RBI seen intervening as rupee falls to lowest level since Sept 2013

The Reserve Bank of India (RBI) started to sell dollars through state-owned banks at around the 64.85 level to slow rupee's slide after the currency hit a 23-month low amid fears of a currency war following China devaluing yuan, three traders said.

The rupee was trading at 64.8250/8350 per dollar at 10.01 am, after weakening to as much as 64.86, its lowest level since September 2013, when the country was in the midst of its worst currency turmoil since the 1991 balance of payment crisis.

RBI Governor Raghuram Rajan has previously said the central bank would not target a specific exchange rate and would only intervene to smoothen volatility.

(Reuters)