RBI likely sold dollars in NDF to keep rupee stronger than 83

THE RESERVE BANK of India has likely been selling dollars in the non-deliverable forward (NDF) market this week to prevent the rupee from weakening past 83 to a dollar, five bankers told Reuters on Friday. The rupee closed at 82.83 to the dollar after touching a more than one-month low of 82.8975 on Wednesday. The unit, however, has managed to avert a further slide despite a jump in US yields and a broad selloff in Asian currencies.

- ANUSHKA TRIVEDI NIMESH VORA

The central banks move to sell dollars in the NDF before the open was likely aimed at ensuring that rupee does not fall below 83, the bankers said.

The RBI was assumed to have been defending that level back in December, according to traders.

The South Korean won and the Thai baht are both down around 2.4% each this week. The Philippine peso has lost 1.3%, while the Chinese yuan has declined about 1% in the same period.