The Reserve Bank of India likely intervened to support the rupee on Wednesday as the currency hovered near its all-time low amid broad-based interbank dollar demand, three traders told Reuters.

The Indian currency was at 87.2175 to the dollar as of 12:15 p.m. IST, down 0.2% on the day and within touching distance of its record low of 87.28 hit on Monday.

State-run banks were spotted offering dollars near 87.24-87.26 levels, most likely on behalf of the RBI, which helped limit the rupee's losses, traders said.

Expectations that the central bank will cut interest rates at its policy meeting on Friday have weighed on the rupee, alongside routine dollar demand from importers.

The dollar index was lower by 0.2% at 107.8 while Asian currencies were mostly stronger.

The rupee has declined more than 1.5% over 2025 so far and is the worst performer among major Asian currencies.