MUMBAI, May 3 (Reuters) - The Indian central bank was
likely buying dollars via public sector banks on Wednesday to
ensure that the rupee remained in a narrow range, traders told
Reuters.
The rupee was at 81.86 to the U.S. dollar at of
midday, compared with a session-high of 81.7650.
The Reserve Bank of India (RBI) "was at it again", a trader
at a private sector bank said.
Its difficult to figure out the logic on why RBI is present
at current levels, "other than the usual of adding (fx) reserves
and dampening volatility", the trader said.
Over the last three sessions, foreign inflows into Indian
equities have aggregated to about $1.5 billion.
The price action suggests that RBI is happy to "take in
these flows", another trader said.
(Reporting by Nimesh Vora; Editing by Savio D'Souza)
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