Indian central bank likely selling dollars to limit rupee depreciation, traders say
MUMBAI, Dec 20 (Reuters) -The Indian central bank was likely selling dollars to limit the rupee's losses after it hit a record low on Friday as strong economic data reinforced the Federal Reserve's hawkish tilt.
The rupee INR=IN was quoted at 85.0825 as of 9:25 a.m. IST after dipping to a low of 85.0975 in early trading.
State-run banks were spotted offering dollars, mostly likely on behalf of the Reserve Bank of India (RBI), traders said.
The rupee is likely to continue weakening gradually with the RBI allowing measured intra-day declines to keep volatility in check, a trader at a private bank said.
The dollar index was at 108.4, hovering close to an over two-year peak, while Asian currencies were mixed.
Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala
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