India cenbank likely selling dollars to limit rupee depreciation, traders say

The Indian central bank was likely selling U.S. dollars on Monday to cap weakness in the rupee, three traders told Reuters.

The rupee was at 83.4850 against the dollar as of 10:50 a.m. IST, weaker than its previous close of 83.3725.

The Reserve Bank of India was likely selling dollars, via state-run banks, near 83.50 levels, a trader at a foreign bank said.

The rupee weakened on Monday alongside most Asian currencies as robust U.S. economic data prompted investors to pare expectations of rate cuts by the Federal Reserve, boosting the dollar and U.S. bond yields.

"Don't see USD/INR crossing 83.55 in the near-term given the RBI's interventions," the trader said. (Reporting by Jaspreet Kalra, Nimesh Vora; Editing by Mrigank Dhaniwala)