India's central bank likely sold U.S. dollars in the foreign-exchange market Tuesday, dealers said, creating a temporary respite for the battered rupee after it fell to all-time lows for the second straight day.The 10-rupee note, now worth a bit more than 17 U.S. cents.
Deep concern over India's economic direction, however, mean the currency is likely to remain under pressure, traders said.
Dealers said the Reserve Bank of India appeared to sell dollars to stop the U.S. currency from breaching 59 rupees. The bank doesn't comment on intervention, but large orders put through state banks—as seen Tuesday—typically point toward central bank activity, dealers said.
The action bought some relief to the rupee, which is one of the worst-performing emerging-market currencies this year due to concerns about India's slowing economy and large current-account deficit.
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