The Indian central bank is possibly selling dollars via public sector banks, with the rupee just shy of a record low, six traders said.
The rupee was at 83.2025 to the US dollar, down from 83.09 at open and within a whisker of the lifetime low of 83.29, according to Reuters.
"Hearing of public sector bank names on the offer (on USD/INR), which you would have to think is for the RBI (Reserve Bank of India)," a trader at a private sector bank said.
Two large public sector banks were major dollar sellers, according to traders.
The RBI has been on offer at "various price points" and not holding to any particular price right now, another trader said.
"Would not be a surprised if rupee saw a new low despite the RBI. The dollar selling is being absorbed without any difficulty," he said.