RBI swung into action to cut the Rupee's losses

The Reserve Bank of India Thursday stepped in to curb the rupee’s sharp slide towards 80, the psychological mark as the central bank is said to have sold as much as $2 billion paring the rupee’s losses against the dollar.

RBI could not be contacted immediately for comments.

The rupee lost 0.39 percent to close at 79.47 a dollar. During the day’s trading it extended losses up to a level of 79.83 when select banks were seen selling dollars on behalf of the RBI. In a gap-down the unit suddenly cut losses.

“The Rupee’s losses Thursday were exclusive to the local market as the dollar was marginally lower to 106.16,” said a trader from a large bank.

“The pressure came from the offshore derivatives market weighing on the rupee,” said the person.

The local unit touched a lifetime low of 80.06 on July 21. Earlier this week, the rupee gained amid signs of a relief rally improving its ranking among emerging market currencies.

“Although the RBI does not aim fo