Rupee@70: RBI may have shifted rupee intervention limit, say analysts

Finance ministry has linked rupee weakness to external factors

The Reserve Bank of India appears to have turned less aggressive in defending the rupee, letting the currency slide closer to its real-effective exchange rate amid an emerging-market selldown.

The central bank, which intervened actively until the rupee hit 69 per dollar, has mostly stayed on the sidelines after the currency broke past the 70 psychological mark last week, according to foreign-exchange traders familiar with the RBI’s market transactions. They asked not to be identified because they aren’t authorized to speak publicly.

Policy makers signaled a tolerance for a weaker currency last week when a finance ministry official said it