MUMBAI (Reuters) – India’s central bank likely bought dollars via state-run banks to prevent the rupee from appreciating significantly above the 81 psychological level, three traders told Reuters.
The rupee was last quoted at 81.125 per U.S. dollar after climbing to 80.89 in early trade. The rupee rose above the 81 level for the first time since Dec. 1.
The sizeable dollar buying from public sector banks after the open point to the Reserve Bank of India, a trader at a private sector bank said, adding importers too are very likely active.
“Based on past instances, it is not a surprise that RBI is there today.”
(Reporting by Nimesh Vora; Editing by Eileen Soreng)
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