The Reserve Bank of India likely sold dollars via state-run banks on Monday after the rupee plumbed a fresh record low following a US jobs report that firmed bets of more aggressive rate hikes, Reuters reports.
The rupee hit a record low of 82.6825, before easing to last trade at 82.38. It is now only marginally lower from 82.32 in the previous session.
The rupee went from less than 82.60 to above 82.40 in the space of less than ten minutes.
The intervention by the RBI was confirmed by two banks and a Mumbai-based brokerage firm.
"The RBI activity, in our opinion, is not more aggressive than in recent days," a spot dealer at a private sector bank said.
"But the rupee has reacted much more than it does, which we think is basically a function of the levels we are at."