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1 billion rupees of Treasury bills in its portfolio to yield 10.92 percent Friday, in the second such transaction for the week, dealers said.
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The rupee strengthened to around 133.83/85 levels in late trading, dealers said.
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Update/recast On July 11, the Central Bank had sold 1.45 billion rupees of bills with 29 days remaining to maturity to yield 10.
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91 percent, according to data published on its website.
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On Friday the Central Bank bids to sell 5.0 billion rupees of bills with 25 days remaining to maturity.
Selling down the Central Bank's T-bill portfolio kills liquidity generated from forex purchases and creates an 'excess' of dollars in forex markets in the ensuing weeks, which can lead to a rapid strengthening of the exchange rate.
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In forex markets the rupee was opened around 133.70/90 to the US dollars and weakened as much as 133.
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95 in intra-day trading dealers said.