India rupee sees mild recovery as RBI steps in to prop up, say traders

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SummaryRBI was likely selling dollars via state-run banks, starting at 65.90 rupee levels, to prevent it from slipping further, three traders said.

The Reserve bank of India (RBI) was likely selling dollars via state-run banks, starting at 65.90 rupee levels, to prevent it from slipping further, three traders told Reuters on Tuesday.

The dollar selling helped the rupee recover some ground and the partially convertible unit was trading at 65.65/66 per dollar at 12:35 p.m. (0705 GMT), but still sharply weaker than its close of 64.30/31 on Monday. It hit a record low of 65.93 earlier.

Traders, however, do not rule out the possibility of the unit hitting 66 to the dollar later in the session as month-end dollar demand from importers continues to pressure it down.

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