Indian central bank likely intervened to halt rupee's decline, traders say

A man speaks on his phone as he walks past the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, February 7, 2025. REUTERS

The Indian central bank likely intervened to support the rupee after it dropped past 87 per US dollar on Tuesday due to demand for the greenback related to derivatives expiry, four traders told Reuters.

The rupee slid to 87.2450 before the Reserve Bank of India's intervention helped it recover to 87.1225. Still, the local currency was down 0.5% on the day.

The RBI sold dollars "relatively quickly" via state-run between 87.20-87.24, a spot trader at a small private bank said.