MUMBAI (Reuters) - The Reserve Bank of India was spotted buying dollars via state-run banks starting around 59.16, two traders said.
The rupee was at 59.2050/2100 per dollar by 12:30 p.m., off its session high of 59.12. The currency closed at 59.1525/1625 on Monday.
The rupee had briefly trimmed its losses after the RBI left its key policy rate on hold on Tuesday, and eased rules to spur bank lending in a move set to be welcomed by the new pro-business government as it seeks to revive economic growth.
Reporting by Neha Dasgupta; Editing by Anupama Dwivedi