The Indian central bank likely sold dollars via state-run banks on Thursday as the rupee gave up most of its intraday gains and threatened to fall to new record lows, traders said.
The intervention by the Reserve Bank of India was confirmed to Reuters by two bankers and a brokerage firm.
The rupee was last trading at 81.92, almost flat from 81.94 in the previous session and within striking distance of the 81.95 record low.
The local unit earlier in the day had risen to 81.5875.
The rupee was not able to sustain the gains on dollar demand from foreign banks and from oil refiners, traders said. The rebound on the dollar index and Treasury yields marching higher after Wednesday's pullback further pressured the rupee. (Reporting by Nimesh Vora; Editing by Savio D'Souza)