RBI buying dollars to halt rupee gain, say traders

The Reserve Bank of India (RBI) was spotted buying dollars via state-run banks, starting around 58.47, which was the rupee's strongest level in 11 months, three traders said.

The Indian currency is trading at 58.52/53 per dollar in early trade, off its session high of 58.47, its highest since June 18. It closed at 58.79/80 on Friday.

The rupee had gained on opening on expectations of continued robust foreign buying in domestic shares and debt after the Bharatiya Janata Party swept the country's elections.

A trader with a brokerage expects the USD/INR pair to be in a 58.50 to 58.70 range during Monday's session.

(Reuters)