RBI likely to intervene in rupee, traders say

The Reserve Bank of India likely sold dollars via state-owned banks on Friday after the rupee fell below 82 to a record low against the dollar on concerns over the U.S. Federal Reserve rate outlook, traders told Reuters.

The rupee was last trading at 82.2675, down from 81.88 in the previous session, but off the session low of 82.33.

The rupee dropped to 82.33 within the first ten minutes of the open and has been range bound since, likely due to RBI intervention, traders said.

Four bankers and a brokerage firm confirmed that the RBI intervention was confirmed by the RBI.

One of the state-owned bankers who confirmed the intervention said that the RBI is making its presence felt and letting traders know that it will not allow one-sided moves.

The intervention will not allow the rupee to fall more, but it will not help the rupee recover by much.