India central bank likely buying dollars via public sector banks traders
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The Indian central bank was likely buying dollars via public sector banks on Wednesday to ensure that the rupee remained in a narrow range, traders told Reuters.
The rupee was at 81.86 to the U.S. dollar at of midday, compared with a session-high of 81.7650.
The Reserve Bank of India (RBI) "was at it again", a trader at a private sector bank said.
Its difficult to figure out the logic on why RBI is present at current levels, "other than the usual of adding (fx) reserves and dampening volatility", the trader said.
Over the last three sessions, foreign inflows into Indian equities have aggregated to about $1.5 billion.
The price action suggests that RBI is happy to "take in these flows", another trader said.
