Speaking to reporters, Garg said the Reserve Bank of India had spent about $23 billion to intervene and support the rupee.
The rupee hit an all-time low of 70.1 to a United States dollar earlier today on concerns over Turkey's economic woes. The currency opened at 69.84 against the dollar and touched a high of 69.75 before falling to 70.08 at 10.34 am, Mint reported. The Turkish currency crisis has strained emerging market currencies such as India.
Technical pattern indicates that the rupee could further depreciate towards 71 per dollar.
"Further rise in crude prices or fresh trouble in the emerging markets, Euro area could result in risk-off sentiments setting in resulting in a fresh round of weakness for emerging market currencies including India despite intermittent RBI intervention from time to time". However, the home currency recovered and was trading at 69.86, up 0.09%, at 1.47pm. It had breached the 69-mark against the USA dollar amid global uncertainties and concerns over inflation.
The Turkish lira has dropped to a record low against the dollar and on Monday a dollar bought just under 6.65 lira.
Meanwhile, some analysts also attribute it to domestic factors at play.
"I feel that it (rupee) should stabilise between 69 and 70 because if you look at the numbers for investment which is coming into the country - investment in bonds, investment in equities - this level has become attractive for foreign investment", Kumar said. Previous resistance for the currency was 69.50 and a fall below that triggered stop losses from importers.