The RBI moved in quickly on Thursday to check the Indian rupee's decline as the current hit an all-time low of 83.985 to the US dollar.
The heavy demand for the dollar from importers is said to have triggered the decline to 83.985 in Thursday's intraday trading. Traders said the fall would have continued and hit Rs 84 a dollar had the RBI not stepped in and sold huge amounts of dollars from the market. On Wednesday, the rupee was at 83.965.
The RBI usually intervenes in the currency market to check excess volatility. It is believed that the RBI sold between 500 and 600 million dollars which prevented the further decline of the rupee.
