Mumbai: The Reserve Bank of India was seen buying dollars via state-run banks to prevent further appreciation in the rupee, four traders said on Monday.
State-run banks started buying dollars aggressively likely on behalf of the central bank when the rupee hit around 60.20 levels, the strongest since July 30, traders said. The rupee strengthened after U.S. monthly jobs data on Friday was weaker than expected.
The RBI was likely also intervening in the forwards market to limit the impact on rupee liquidity, two traders said. By 10:45 a.m., the partially convertible unit was trading at 60.24/25 per dollar, stronger than its close of 60.39/40 on Friday.