The Indian central bank likely sold dollars via state-run banks on Wednesday as rising Treasury yields and mounting risk aversion pushed the rupee to a record low, traders said. The rupee was trading at 81.8675 per U.S. dollar, down from 81.58 in the previous session. The local unit earlier reached a record low of 81.9350.
The intervention by the Reserve Bank of India was confirmed to Reuters by three bankers and a brokerage firm. “There are two major state-run banks who are selling dollars,” said one of the traders.
(More details are awaited.)