Mumbai: The rupee pared most of its early losses on Tuesday and recovered from the alltime-low of 64.12 against dollar after the Reserve Bank of India (RBI) stepped into the currency market to shore up the battered currency. Dealers said state-run banks were seen selling dollars in the afternoon trade on behalf of the central banks. RBI is struggling to support a freefalling currency, which has weakened 13.02% and has lost the most among Asian currencies during that period.

RBI’s intervention helped the unit recover from its sub-64 levels, dealers said. “It looks like there was RBI in the market," a treasury dealer with a Mumbai-based private sector bank said. Typically RBI intevenes in the currency market state-run banks in the event of sharp volatility in the currency value through.

The rupee ended at 63.23, down 0.16% from the previous close of 63.13 and 1.41% up from its alltime low. The dollar index, which measures the US currency’s strength against major currencies, ended at 81.063, down 0.20% from the previous close of 81.226.

Bond yields too recovered tracking the currency movement. The yield on india’s 10-year becnhmark bond ended at 8.925% after touching a high of 9.49%—a level last seen in september, 2001..

BSE’s benchmark Sensex fell by 336 points in the morning to 17,970.98 points, but later recovered to end at 18246.04, down 0.34% from the previous close.

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