India’s RBI likely sells dollars as surging U.S. yields hold rupee hostage – traders

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An attendant at a fuel station arranges Indian rupee notes in Kolkata

MUMBAI (Reuters) – The Indian central bank likely sold dollars via state-run banks on Wednesday as rising Treasury yields and mounting risk aversion pushed the rupee to a record low, traders said.

The rupee was trading at 81.8675 per U.S. dollar, down from 81.58 in the previous session. The local unit earlier reached a record low of 81.9350.

The intervention by the Reserve Bank of India was confirmed to Reuters by three bankers and a brokerage firm.

“There are two major state-run banks who are selling dollars,” said one of the traders.

“It looks like they want to protect the 82 level for today.”

(Reporting by Nimesh Vora; Editing by Savio D’Souza)

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