Dealers told ET that the RBI was initially estimated to have sold at least $ 1.5 billion in the futures and spot markets through the two largest state-owned banks.
This has maintained the relative strength of the rupee among Asian peers. On Thursday, the Indian unit ranked third behind the Japanese yen and the Hong Kong dollar, losing nearly 0.27% to the dollar despite hitting its all-time low of 77.63 at 77.53 during Monday’s trade.
“Two large public sector banks have sold dollars on behalf of the central bank,” said one person quoted above. A private bank is likely to sell dollars through Gujarat Gift City
According to Bloomberg data, the rupee closed at 77.42. It closed at .4 77.46 on Monday, its lowest closing level.
The RBI has not commented on the matter.
“Collectively, the rupee may be under pressure despite the relative resilience of Asian peers,” said Abhishek Goenka, CEO of IFA Global, a Mumbai-based forex adviser. “India is facing double the impact of foreign inflows, both in terms of inflation risk and debt and equity, which has never happened before.”
Bloomberg’s one-month volatility index rose 30 basis points, less than half the speed at which the yuan has become volatile against the greenback.