Rupee trades flat against US dollar amid likely RBI intervention
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) On the domestic front, India's headline retail inflation rate, or the Consumer Price Index (CPI), cooled down to a three-month low of 5.02% in September led by drop in vegetable prices, according to data released by the Ministry of Statistics and Programme Implementation on Thursday. Inflation print for August was 6.83%.
The Reserve Bank of India (RBI) likely sold US dollars near 83.25 levels via state-run banks, five traders said. The RBI is clearly defending a certain level for the rupee, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities.
The local unit could face additional pressure from foreign investors continuing to sell Indian equities, Parmar added. Overseas investors have sold Indian equities worth $966 million in October so far, adding to the $1.77 billion worth of sales last month, according to NSDL data.
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