The Reserve Bank of India likely sold dollars through state banks on Wednesday as rising government bond yields and rising risk aversion pushed the rupee to a record low, traders said.
The rupee traded at 81.8675 per US dollar, down from 81.58 in the previous session. The local unit previously hit a record low of 81,9350.
The intervention of the Reserve Bank of India was confirmed to Reuters by three bankers and a brokerage firm.
“There are two major state banks that sell dollars,” said one of the traders.
“Looks like they want to protect the 82 level for today.”