RBI likely selling dollars as rupee weakens past 84/USD: Traders

The Indian central was likely selling dollars via large state-run banks on Friday to prevent sharp declines in the rupee after it weakened past 84 for the first time, five traders told Reuters.

The rupee dropped to a low of 84.07 earlier in the session and was quoted at 84.0525 as of 12:55 p.m. IST.

Large state-run banks were spotted selling dollars, likely on behalf of the central bank, and the offers were "especially strong" near 84.07-84.08 levels, a trader at a large private bank said.


Strong dollar demand from oil companies and large foreign banks, likely related to outflows from local equities, pressured the rupee on Friday, traders said.

Benchmark Indian equity indices, the BSE Sensex and Nifty 50, were down 0.3% and 0.2%, respectively.

Asian currencies were mostly higher while the dollar index was steady at 102.9.