The Reserve Bank of India (RBI) was forced to sell dollars on Wednesday as the Indian rupee hit a low of 61.17 in early trade, coming perilously close to its all-time low of 61.21 on July 8.
On Tuesday, the rupee had closed at 60.48 to the dollar. The RBI reportedly sold dollars via state-run banks. The rupee has come under sharp selling pressure after the RBI kept interest rates on hold yesterday and failed to announce any additional steps to defend the currency.
The partially convertible rupee has now erased all gains since the RBI first announced steps to defend the rupee by withdrawing cash on July 15.
Photo : AFP