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The Reserve Bank of India (RBI) likely sold dollars via state-run banks in both the spot and forward currency markets to prevent the rupee from slipping below 68 to the dollar, four traders told Reuters on Thursday.
The partially convertible rupee was trading at 67.33/34 per dollar, recovering sharply from the session low of 67.92, although that is sharply stronger than its previous close of 68.80/81.
The one-year forward premium was also trading sharply lower at 418.75 points compared to its previous close of 497 points and sharply below its session high of 489.75 points.
The rupee had hit a record low of 68.85 on Wednesday but recovered on Thursday after the RBI's move to provide dollars directly to oil companies provided relief to the currency.
