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RBI likely sold dollars, received forwards to stem rupee’s drop: Report

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The likely sold dollars via state-run banks on Tuesday and conducted buy/sell swaps to limit the rupee’s losses, three traders told Reuters.


The rupee was last trading at 82.3850, down from 82.32 in the previous session after hitting a record low of 82.6825 on Monday.

The rupee has traded in a narrow range of about 8 paisa so far in the session.


In comparison, the Korean won is down 1.7% and the offshore Chinese yuan had declined 0.5% to the dollar.


The relative stability in the rupee is thanks to the RBI, traders said.


The USD/INR 1-year implied yield slipped to 2.89%, against 2.96% in the previous session. The RBI was conducting buy/sell swaps, likely to sterilize its intervention in the spot market, a trader at a private sector bank said.


“The RBI is probably running down its forward book further.”

(Reporting by Nimesh Vora; Editing by Dhanya Ann Thoppil)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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