BRICS: India dumping US Dollar worth millions to protect rupee

SHANGHAI : BRICS member India is most likely dumping millions of US dollar from its reserves to keep the rupee from falling. The Indian rupee touched a low of 84.13 on Tuesday, and the development is worrying the Reserve Bank of India (RBI).

Reuters reported that the RBI is likely selling the US dollar worth millions in the currency markets to stop the rupee’s fall. Not just India, several BRICS countries have been accused of selling the US dollars to keep their local currency from falling.

Sources close to the development said on the condition of anonymity that India’s central bank does not want the rupee to fall below 84.15. A trader from a private bank said, “It’s quite unlikely” that RBI will allow the rupee to dip below 84.15. BRICS countries have been previously accused of interfering in the currency markets to prevent the US dollar from rising against the local currencies.