Indian cenbank likely intervenes to support rupee at record low, traders say
The Indian central bank was likely selling dollars on Monday to support the rupee, traders said, after the currency declined to its all-time low on concerns about foreign portfolio outflows following weak economic data and a decline in Asian peers.
The rupee declined to a record low of 84.5950 per U.S. dollar in early trading, down 0.1% on the day.
State-run banks were spotted offering dollars near the 84.60 level, most likely on behalf of the Reserve Bank of India, four traders told Reuters.
It's "quite likely that the RBI will try to hold the line near these levels today but a decline towards 84.70 cannot be ruled out," a trader at a state-run bank said.
The dollar index was up 0.2% at 106.2, while Asian currencies declined between 0.3% and 0.6%.
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