RBI likely sold dollars via state-owned banks to support rupee

Indian rupee was trading at 66.7950/8000 to the dollar

Mumbai

: The Reserve Bank of India likely sold dollars through state-owned banks to stem the rupee's fall around 66.88 per dollar, three state-owned bank traders said. At 0421 GMT, the Indian rupee was trading at 66.7950/8000 to the dollar, after plunging to an over two-year low at 66.8950.

The Indian rupee tumbled in line with its Asian peers due to persistent risk-off sentiment on the back of broad dollar strength.

Asian shares fell and the dollar held near an 8-1/2-month peak on Friday, while the euro hovered around seven-month lows on expectations of additional stimulus from the European Central Bank next week.