RBI intervenes to defend rupee

NEW DELHI, May 12 (Reuters): India's central bank likely sold $700 million dollars to prop up the rupee on Thursday as it plunged to a record low, according to three traders, amid broad based selling in Asian currency markets.
The rupee fell as much as 0.5 per cent to 77.63 to the dollar, its second record low in less than a week.
The Reserve Bank of India (RBI) intervened both in the spot and the futures market when the rupee hit 77.55-77.60, the traders, who did not want to be identified, told Reuters.
On Wednesday, Reuters reported RBI intervened in the market through the week and the official said it will do so again if volatility persists without targeting any particular level.
The official said that it does not like "jerky" movements of over 0.50 Indian rupees against the dollar in one day.
Traders said RBI has sold $2 billion to $3 billion worth of dollars since the start of the week to defend the rupee.