Large Indian state-run bank sold dollars aggressively, likely for cenbank - traders
The rupee rallied from 83.12 to 83.00 against the U.S. dollar within the span of about a minute on the inter-bank order matching system.
It was last trading at 82.97.
The selling was very aggressive and the purpose it seems was to ensure that the USD/INR did not register a closing above 83 on a weekly basis, a trader at a private sector bank said.
The Reserve Bank of India did not immediately respond to a request for comment.
The Indian rupee sank to a record closing low of 83.21 on Thursday, but has since recovered.
The RBI seems determined to keep INR away from a record low but given global conditions, the pressure may persist, a foreign exchange trader at a foreign bank said.
Elevated U.S. Treasury yields, higher crude prices and strength in the dollar have continued to pressure the rupee.
The dollar index was last at 104.92 in Asia, slightly weaker but within spitting distance of its six-month high of 105.15 hit overnight.
The Indian central bank's defence to prevent the rupee from sliding to a record low has also likely extended to currency futures, Reuters reported earlier today.
Earlier in the week, the RBI had intervened in non-deliverable forwards and the onshore over-the-counter (OTC) market to keep the rupee from breaching its record low.
