Indian central bank likely selling US$ to support rupee, traders say

The Indian central bank is likely selling US dollars on Friday, October 11, 2024, to support the rupee as the currency was pinned near its record low amid worries about elevated oil prices and outflows from local equities, four traders tells Reuters. The rupee INR=IN was quoting at 83.9750 per US dollar compared with its close at 83.9675 in the previous session. The currency had declined to its all-time low of 83.9850 last month. FILE / STOCK IMAGE

MUMBAI — The Indian central bank was likely selling US dollars on Friday to support the rupee as the currency was pinned near its record low amid worries about elevated oil prices and outflows from local equities, four traders told Reuters.

The rupee INR=IN was quoting at 83.9750 per US dollar compared with its close at 83.9675 in the previous session. The currency had declined to its all-time low of 83.9850 last month.

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“Mild” dollar offers from state-run banks were present near 83.98 levels, most likely on behalf of the Reserve Bank of India (RBI), one of the traders said.

The RBI has routinely intervened to help the rupee near these levels over the past two months.

Asian currencies were mostly higher on the day while the dollar index =USD was little changed at 102.8.