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RBI likely sells dollars as surging US yields, risk aversion in equities hold Indian Rupee hostage

The rupee was trading at 81.8675 per U.S. dollar, down from 81.58 in the previous session.

RBI likely sells dollars as surging US yields, risk aversion in equities hold Indian Rupee hostage
The intervention by the Reserve Bank of India was confirmed to Reuters by three bankers and a brokerage firm.

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.

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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.)

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