INR USD | RBI likely selling dollar to support rupee amid slide in exchange rate

Traders say that public sector banks were spotted offering dollars near the 88.70 mark, most likely on behalf of the RBI.

The Reserve Bank of India was likely selling dollars to support the rupee on Thursday as the currency remained under pressure in the face of persistent portfolio outflows and was hovering near its all-time low, five traders told Reuters.

The rupee is hovering near its all-time low against the US dollar. (Representational Image/Pixabay)

The rupee was last at 88.68 against the US dollar, little changed on the day. It had declined to a record low of 88.7975 earlier this week.

Traders said that state-run banks were spotted offering dollars near the 88.70 mark, most likely on behalf of the RBI. “There is presence of central bank around 88.68-88.70 levels, but it is very mild and they are not very active,” a trader with a state-run bank said.

India's benchmark equity indexes, BSE Sensex and NSE Nifty 50 were down about 0.3% each on the day, with IT stocks down 1%.