India’s central bank was
likely selling dollars through state-run banks and pairing these
with buy-sell dollar/rupee swaps on Tuesday, five traders said,
as portfolio outflows and uncertainty over the Iran war
continued to weigh on the rupee.
Dollar-rupee forward premiums pulled back on account of the
central bank’s buy/sell swaps, with the 1-year implied yield
retreating 9 basis points to 3.06 per cent.
The rupee was down 0.2 per cent at 95.1750 per U.S. dollar.
Traders said the losses would have been steeper if not for the
central bank’s market intervention.