Mumbai: The Reserve Bank of India likely sold dollars via state-run banks after the rupee slid to a record low on Thursday, several dealers said, as fears of foreign outflows from India are roiling domestic bond and stock markets.
               
The intervention was spotted when the rupee hit 59.90 to the dollar or below, these traders said. The rupee fell after the Federal Reserve signalled an end to its monetary stimulus and after China turned the screw on credit even as factory activity in the world's second largest economy hit a nine-month low.
               
The rupee's recovery was also helped by expectations the government may take steps to arrest the slide. India's chief economic adviser is scheduled to brief reporters at 0545 GMT.
               
The rupee was at 59.63/64 to the dollar at 0510GMT, after earlier falling to a record low of 59.9350. The currency closed at 58.71/72 on Wednesday.

Finance Minister holds meeting with officials over rupee fall

The Finance Minister P Chidambaram held a meeting with his top civil servants on Thursday about the fall of the Indian rupee, which has plunged to a record low level.
               
The rupee has fallen to 59.9350 to the dollar, a day after the US Federal Reserve indicated a tapering of its monetary stimulus, and data showed China's factory activity weakened to a nine-month low in June.  

Chief Economic Adviser to brief press at 0545 GMT
               
The chief economic adviser Raghuram Rajan said he will brief the media at 11:15 local time (05:45 GMT) on Thursday after the rupee fell to a record low level.
               
The rupee has fallen to 59.9350 to the dollar, a day after the US Federal Reserve indicated a tapering of its monetary stimulus, and data showed China's factory activity weakened to a nine-month low in June.
               
Reacting to the rupee's fall, Rajan said the US Quantitative Easing programme cannot continue indefinitely.

(Agencies)

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