Intervention in forex to continue: RBI

The rupee fell to a life-time low of 54.91 to the dollar today

The Reserve Bank of India will continue to intervene and take administrative measures to protect the rupee, deputy governor Subir Gokarn said on Friday.

"The approach over the last few months have been a combination of intervention at times when we have felt it will help us stabilise, and some administrative action. This is the approach that will work now," he said on the sidelines of an event.

The rupee fell to a life-time low of 54.91 to the dollar on Friday, remaining the worst performer among Asians since March.

Huge demand for dollars due to rising imports, and shrinking inflows from foreign investors due to sluggish growth, high inflation, widening current account and fiscal deficits and policy stalemate are key factors for the slide in the rupee.