In this file photo, a fruit vendor counts a wad of Indian Rupee currency notes for payment at his roadside stall in Mumbai on July 19, 2022. The Indian central bank is likely buying dollars via state-run banks to prevent the rupee from appreciating in the wake of inflows, three traders said on May 2, 2023. (PHOTO / AFP)
MUMBAI – The Indian central bank is likely buying dollars via state-run banks to prevent the rupee from appreciating in the wake of inflows, three traders told Reuters on Tuesday.
The Indian rupee was trading at 81.8275 per US dollar, having reached 81.7325 earlier.
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The long weekend inflows and the dollar offers from foreign banks are "once again running into a resolute" Reserve Bank of India (RBI), a trader at a private sector bank said.
The state-run banks have been consistently on the bid since morning and it is "difficult to put it down to anything" other than the RBI, another trader said.
The dollar index was down 0.2 percent to 101.92.