The Indian currency yesterday crashed to a life time low of 70.09 on concerns over Turkey's economic woes that have impacted various emerging markets.
Caught in a fresh wave of global currency turbulence, the Indian unit fell by a staggering 23 paise to end at 68.83.
However, suspected currency market intervention by the Reserve Bank of India through state-run banks largely helped the local unit to cut short early steep losses.
Currently, monthly contracts are available on all approved currency pairs, including USD-INR currency pair.
Overnight forex can be a nightmare and you may never know how rates turn out
These concerns mainly reflect the increasing volatility in currencies amid an uncertain macroeconomic and geopolitical outlook.
Meanwhile, country's foreign exchange reserves fell by USD 3.039 billion to USD 410.070 billion in the week to June 15, a RBI data showed.
Meanwhile, Indian bond markets staged a rebound after two-day intense selling and the 10-year benchmark bond yield finished lower at 7.95 percent after briefly climbing 8 percent in early trade. The RBI, meanwhile, fixed the reference rate for the dollar at 67.5228 and for the euro at 79.5824.
The central bank on Wednesday increased key interest rates by 25 basis points to 6.25 percent - the first such hike in more than four years.
Forex market sentiment was buoyed by the Reserve Bank retaining growth forecast for the current fiscal at 7.4 percent on hopes of further boost to investments and higher consumption.
In the previous reporting week, the reserves had declined by USD 1.13 billion to USD 420.591 billion.
The reserves had touched a life-time high of USD 421.914 billion on February 9, FY18. It had crossed the USD 400-billion mark for the first time in the week to September 8 but has since been fluctuating.
This is its biggest fall since February 1, when it had lost 44 paise.
The pound sterling also finished lower at Rs 88.76/78 per pound
The total reserves had risen by USD 3 billion to USD 417.89 billion in the previous reporting week.
The rupee had depreciated by a staggering 70 paise in a five-day losing run, giving back all its 2018 gains.
Intraday, the home currency touched a high and low of 63.44 and 63.77, respectively. The level at which it ended was last seen on July 17, 2015.
The reserves had crossed the USD 400-billion mark for the first time in the first week of September this year but have been fluctuating since then.
The pound sterling also finished lower at Rs 85.70/72 at the close of the Interbank Foreign Exchange.
The gold reserves remained unchanged at USD 20.703 billion, unlike in the last reporting week when it had risen by a tad.
The pound sterling also finished higher at Rs 86.10/12 at the close of the Interbank Foreign Exchange (forex) market on Wednesday.
The rupee opened higher by 4 paise at 64.98 per dollar as against yesterday's closing level of 65.02 per dollar at the Interbank Forex Market (FOREX).
The rupee resumed higher by 18 paise at 64.75 per dollar as against last Friday's closing level of 64.93 at the Interbank Forex Market (Forex) market.
As per the discussion paper floated in this regard, the retail market will have the same market hours as the interbank market (09:00 to 17:00 hrs).
The home currency has now appreciated by 24 paise in the recent leg of rally despite heavy capital outflows.