RBI seen boosting rupee with dollar sales, traders say
In short
Traders said state-run banks sold dollars before the spot market opened, likely for the RBI. Sanjay Malhotra also said more steps may be taken to keep the rupee moving in an orderly way.
This mattered because the rupee got support from dollar sales. The exact size of the intervention was not stated, and the RBI did not confirm details in the available reporting.
What the reporting says
State-run banks were spotted selling dollars before the local spot market opened, traders said, in moves likely on behalf of the RBI. The reports also cited RBI chief Sanjay Malhotra saying further steps may be taken to ensure orderly movement in the rupee. The immediate effect was support for the currency, but the scale and official confirmation of the intervention were not stated.
Why it matters
Traders said state-run banks were seen offering dollars before the local spot market opened, which they believed was on behalf of the RBI. That matched comments from RBI chief Sanjay Malhotra that further steps may be taken to ensure orderly movement in the rupee. The reports point to central-bank support for the currency, but the size, timing and exact mechanism of the intervention were not stated.