MUMBAI State-owned banks likely sold dollars on behalf of the Reserve Bank of India to prevent the local currency from weakening further, three FX traders told Reuters on Monday.
State-owned banks were spotted selling dollars after the local currency plunged to an over two-week low of 66.50 to the dollar earlier in the session.
The rupee fell in line with Asian peers after disappointing China factory data, while risk sentiment took a further hit due to ongoing geopolitical tensions in the Middle East.
At 11.44 a.m., the rupee was trading at 66.4650/4675 to the dollar compared with 66.1350/66.1450 on Friday.
(Reporting by Neha Dasgupta; Editing by Anand Basu)
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Published Date: Jan 04, 2016 13:07 PM | Updated Date: Jan 04, 2016 13:07 PM