RBI Buying Dollars Via State-Run Banks: Traders

The Reserve Bank of India is suspected to be buying dollars in the market via state-run banks to prevent appreciation in the rupee above the 70.50 per dollar level, four traders said on Friday.

By 0425 GMT or 9:55 am, the partially convertible rupee was at 70.61 per dollar.

Earlier in the session, the rupee touched 70.51, its strongest level since September 30. The currency closed at 70.83 on Thursday.