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.
