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Our Bureau

Mumbai, Feb. 7

The rupee was virtually unchanged against the dollar for the third day, on reports of central bank intervention.

Dealers said the domestic currency opened strong at 44.0750/0850 but dipped to close at 44.12/1250, against Tuesday's close at 44.10/11. Market participants said that while there were dollar inflows in the forex market, public sector banks were buying the greenback, reportedly on RBI advice. Dealers said that if the RBI had not intervened, the rupee would have easily broken 44 and touched 43.80.

"The central bank may be intervening in the forex market, to shore up liquidity in the system ahead of the Rs 9,000-crore government securities auction on February 9. Besides, the RBI may not be in favour of a volatile and appreciating home currency as it may hurt small exporters," said a dealer at a private bank. In forwards, the 6-month closed at 3.09 per cent (3.3) and the 12-month ended at 2.9 per cent (3).

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RBI intervention impacts rupee

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