RBI likely stepped in to support rupee, conducts swaps, say traders

The Indian central bank likely ​stepped in to the ​foreign exchange market on ‌Wednesday to support the rupee, three traders told Reuters, as maturing contracts in the non-deliverable forwards market exerted pressure on the currency.

The rupee was at 95.27, up modestly ‌on the day after hitting an intra-day low of 95.5625 in early trading.

The Reserve Bank of India also likely paired its ​spot dollar sales with dollar-rupee buy/sell swaps for ‌maturities over 1 year, the traders ​said.

Both ‌the spot dollar sales and swaps ‌were being carried out by state-run lenders, ‌likely on behalf ​of the ​RBI, one of the traders added.

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