MUMBAI, – The Indian central bank was likely selling U.S. dollars to help the rupee hold above a key psychological support level for the currency at 84.50, three traders told Reuters.
The rupee was marginally weaker at 84.4625 as of 9:20 a.m. IST, compared to its close at 84.4525 in the previous session.
State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India (RBI), the traders said.
The RBI has frequently intervened to help the rupee near these levels and has asked banks to cut speculative positions against the currency as it weakened to its all-time low of 84.5075.
Dollar demand from importers and foreign banks pressured the rupee in early trading on Thursday, a trader at a state-run bank said. The dollar index was slightly higher at 106.2 after slumping 0.7% on Wednesday, while Asian currencies were mixed. (Reporting by Jaspreet Kalra; Editing by Sonia Cheema)
