Rallying for the second straight session, the rupee jumped 37 paise to close at 82.45 against the US dollar on Thursday amid a weak greenback overseas.
India's forex reserves slumped to the lowest in over two years, marking the third straight week of decline as the RBI intervened to keep the rupee from weakening past 80 per dollar.
India's foreign exchange reserves slumped by over $2 billion in the week ending August 12, as the Reserve Bank of India intervened to shore up the rupee and keep the currency below 80 per dollar.
The rupee inched higher on Monday, tracking a modest rise in its Asian peers as the Reserve Bank of India has vowed to do what it takes to defend the currency from "jerky movements."
India's forex reserves fell by $7.5 billion as the Reserve Bank of India is using its war chest to limit the sharp decline and 'jerky movements' in the rupee.