As the Rupee Falls To New Record Low, RBI Sells Dollars: Report

According to Reuters, three trader told, the Reserve Bank of India (RBI) likely sold dollars via state-run banks on Friday after the rupee extended losses to hit a record low.

The rupee was last trading at 81.0575 per US dollar, compared with the day's low of 81.2250 and the previous session's close of 80.86.

"The intervention at 81.20 was quite aggressive and possibly puts a floor on the rupee for the time being," a trader at a private sector bank said.

Meanwhile, the Sensex and the Nifty dropped sharply in trade following the plunge in the rupee.

Indian equities on Friday opened lower as banks and financials continued to drag down risk sentiment globally amid fresh concerns about economic growth.

In the coming year or so, the members of the U.S. Federal Reserve expect to raise interest rates aggressively and keep them there. This has sparked another round of dollar purchasing that has forced other assets to flee.