Please try another search
© Reuters. FILE PHOTO: A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad, India, September 20, 2018. REUTERS/Amit Dave
NEW DELHI (Reuters) - India's central bank likely sold $700 million dollars to prop up the rupee on Thursday as it plunged to a record low, according to three traders, amid broad based selling in Asian currency markets.
The rupee fell as much as 0.5% to 77.63 to the dollar, its second record low in less than a week.
The Reserve Bank of India (RBI) intervened both in the spot and the futures market when the rupee hit 77.55-77.60, the traders, who did not want to be identified, told Reuters.
On Wednesday, Reuters reported RBI intervened in the market through the week and the official said it will do so again if volatility persists without targeting any particular level.
The official said that it does not like "jerky" movements of over 0.50 Indian rupees against the dollar in one day.
Traders said RBI has sold $2 billion to $3 billion worth of dollars since the start of the week to defend the rupee.
RBI did not immediately reply to a message seeking comment.
The RBI has foreign-currency reserves of about $597.7 billion, which it sees as a formidable stockpile to defend the rupees.
"RBI is showing intent in reducing rupee volatility," one of the trader said.
The rupee pared some of its early losses after the RBI's intervention to trade at 77.46 against the dollar.
The currency has been under pressure due to concerns over rising inflation, traders said.
India's March retail inflation rose to a 17-month high of 6.95% and April data is expected later in the day.
By Sinéad Carew NEW YORK (Reuters) - The U.S. dollar index was lower on Monday after hitting a 20-year peak last week, with the global economy in focus after weak economic data...
By Winni Zhou and Alun John SHANGHAI/HONG KONG (Reuters) - Major investment houses are cutting their forecasts for the yuan for the second time in just three weeks as the Chinese...
By Peter Nurse Investing.com - The U.S. dollar held firm in early European trade Monday, just off a 20-year high as traders sought out this safe haven amid concerns of slowing...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.