RBI Seen Selling Dollars to Curb Rupee Weakness Near Record Low

The Reserve Bank of India was likely intervening in the forex market on Tuesday by selling U.S. dollars to check the rupee’s decline, traders told Reuters, as the currency hovered close to its lifetime low. The rupee remained under pressure amid persistent demand for dollars.

As of 11:00 a.m. IST, the rupee was trading at 90.99 per dollar, down 0.1% on the day. Earlier, it slipped to 91.0525, coming close to breaking its all-time low of 91.0750, which was recorded last month.

Market participants said state-run banks were seen offering dollars, indicating possible central bank action. However, traders noted that the intervention appeared limited in size, continuing a trend seen over the past two sessions.

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