The Reserve Bank of India (RBI) likely sold US dollars via state-run banks on Monday afternoon to prevent the Indian rupee from slipping below the 61 per dollar mark, four traders said, after intervening earlier in the morning as well.
The partially convertible rupee was trading at 60.81/82 per dollar at 4 p.m. (1030 GMT), close to the session's high of 60.79 but still well below its previous close of 60.2250/2350. Earlier in the day, the rupee hit a life low of 61.21.
"The central bank likely sold dollars starting at around 60.92 levels. Not too sure about the quantum but in this market you hardly need a large quantum," a senior dealer with a private bank said, suggesting volumes are very thin.