RBI Likely Buying Dollars in Spot, Paying Forwards: Traders

The Reserve Bank of India (RBI) was possibly buying dollars in spot and paying in forwards via public sector banks on today  to mop up foreign currency inflows, three traders told Reuters.

The rupee was at 81.90 to the dollar, off the day's high of 81.7750 and compared with 82.0550 in the previous session.

Two large public sector banks bought dollars near the 81.80 levels, likely for the RBI, traders said. Meanwhile, a Germany-based bank has persistently been on the offer on the pair, according to traders.

"There are definitively some custodial-related or non-deliverable forward (NDF)-related inflows," a trader at a private sector bank said.

Plus, public sector banks were conducting sell/buy swaps for February delivery, traders said. The Feb forward premium inched up to 1.7150 rupees.

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