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The Reserve Bank of India likely sold dollars via state-run banks on Tuesday and conducted buy/sell swaps to limit the rupee's losses, three traders told Reuters.

The rupee was last trading at 82.3850, down from 82.32 in the previous session after hitting a record low of 82.6825 on Monday. The rupee has traded in a narrow range of about 8 paisa so far in the session.

In comparison, the Korean won is down 1.7% and the offshore Chinese yuan had declined 0.5% to the dollar.

The relative stability in the rupee is thanks to the RBI, traders said.

The USD/INR 1-year implied yield slipped to 2.89%, against 2.96% in the previous session. The RBI was conducting buy/sell swaps, likely to sterilize its intervention in the spot market, a trader at a private sector bank said.

“The RBI is probably running down its forward book further.”