India central bank likely bought dollars in spot to stem rupee slide
Last updated on: 25 July,2023 01:18 pm
Public sector banks are conducting swaps, indicating RBI is sterilizing spot intervention
MUMBAI (Reuters) – The Reserve Bank of India likely bought dollars and conducted sell/buy swaps via public sector banks after the rupee reached a more-than-two-month high on Tuesday, three traders told Reuters.
The rupee was last at 81.7950 to the US dollar, off the day's high of 81.6750 while the USD/INR 1-year forward implied yield rose 3 basis points to 1.72 per cent.
Two public sector banks were buying dollars, likely for the RBI, while a large private sector bank was on the bid on USD/INR for its importer clients, a currency trader said.
Public sector banks were conducting sell/buy swaps for June delivery, indicating that the RBI was sterilizing the spot intervention, traders said.