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RBI likely selling dollars, conducting FX swaps via state banks, traders say

The Reserve Bank of India (RBI) is reportedly selling dollars and conducting foreign exchange (FX) swaps through state banks, as confirmed by three traders. This action is significant as it supports the Indian rupee's recovery from session lows, indicating the RBI's proactive measures in stabilizing the currency amidst market fluctuations. Such interventions are crucial for maintaining economic stability and can influence inflation and trade balances, making this a vital topic for competitive exams.