MUMBAI (Reuters) – The Indian central bank was likely selling U.S. dollars on Thursday to help the rupee hold above the key support level of 84, five traders told Reuters.
The rupee was quoting at 83.97 per U.S. dollar compared to its close at 83.9775 in the previous session. The local currency had dipped to its all-time low of 83.9850 last week.
State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India, in “small lots” near 83.97-83.98 levels, a trader at a foreign bank said.
The RBI has routinely intervened to help the rupee near these levels over the past month, traders said.
Asian currencies were mostly lower on Thursday after resilient U.S. inflation data dashed hopes of a 50-basis-point rate cut by the Federal Reserve next week.
(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)
