RBI likely selling dollars to prevent rupee from hitting record low, traders say

RBI likely selling dollars to prevent rupee from hitting record low, traders say

The Indian central bank was likely selling dollars to support the rupee on Friday as the currency was pinned near its record low, four traders told Reuters.

The rupee was at 83.73 against the dollar as of 09:20 a.m. IST, just shy of its record low of 83.7450 hit on Wednesday.

Broad risk aversion and strong dollar bids from large foreign banks, likely on behalf of custodial clients, pressured the rupee on Friday, traders said.

The Reserve Bank of India was selling dollars "heavily" via state-run banks near 83.74 levels, a trader at a mid-sized foreign bank said.

The dollar index was at 104.3 while Asian currencies were mixed.

Benchmark Indian equity indexes, the BSE Sensex and Nifty 50, were down about 0.7% each, tracking losses in global equities.