rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » RBI may have sold dollars after rupee hit record low

RBI may have sold dollars after rupee hit record low

Last updated on: June 20, 2013 12:18 IST

The Reserve Bank of India (RBI) likely sold dollars via state-run banks after the rupee slid to a record low on Thursday, several dealers said, as fears of foreign outflows from India are roiling domestic bond and stock markets.

The intervention was spotted when the rupee hit 59.90 to the dollar or below, these traders said. The rupee fell after the Federal Reserve signalled an end to its monetary stimulus and after China turned the screw on credit even as factory activity in the world's second largest economy hit a nine-month low.

The rupee's recovery was also helped by expectations the government may take steps to arrest the slide. India's chief economic adviser is scheduled to brief reporters at 11.15 a.m.

The rupee was at 59.63/64 to the dollar at 10.40 a.m., after earlier falling to a record low of 59.9350. The currency closed at 58.71/72 on Wednesday.

Subhadip Sircar and Swati Bhat in Mumbai
Source:
© Copyright 2013 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.