MUMBAI -- India's central bank was seen in the market Monday, helping the rupee recover from a low of more than five weeks against the U.S. dollar, three dealers said.
The Reserve Bank of India likely started selling dollars when the greenback was trading around 49.90 rupees, the dealers said.
One of the dealers said the RBI was seen simultaneously selling forwards due to mature in January to smoothen the intervention.
The dollar was trading at 49.86 rupees at 1120 GMT after touching an over five-week high of 49.95 rupees earlier in the session.
The RBI doesn't acknowledge whether it intervened in the currency markets and has a stated policy of intervening only to curb volatility.
However, data show that the RBI's foreign currency sales jumped to an over three-year high of $7.8 billion in December, indicating that the central bank intervened heavily as the rupee fell to a record low of 54.2925 to the dollar on Dec. 15.
