India central bank likely selling dollars to cap rupee depreciation, traders say

The Indian central bank was likely selling U.S. dollars to limit weakness in the rupee, four traders told Reuters.

The rupee USDINR was at 83.4850 against the dollar as of 09:50 a.m. IST, barely changed from its previous close at 83.50.

The rupee has remained under pressure over the last few trading sessions amid sustained outflows from Indian equities and dollar demand from local importers.

The RBI was likely selling dollars, via state-run banks, near 83.50 levels, a foreign exchange trader at a private bank said.

"In the near term, don't think we'll see a fall much below 83.50 given the RBI's stern defence," the trader added.