The Reserve Bank of India (RBI) did not buy or sell dollars in the foreign exchange market in January, the central bank's monthly bulletin showed.
RBI, also did not intervene in the forex market in December. The RBI data was released late on Wednesday.
The rupee had been volatile in January moving both ways, and traded in a wide range of 46.62 to 45.285, which was its strongest level since September 2008.
In 2009 the central bank sold a net USD 5.8 billion to prevent the rupee from depreciating sharply.
In early March 2009, the rupee had dropped to a record low of 52.2 per dollar but ended the year up 4.7 per cent helped by large foreign fund inflows.
From April to January, the first 10 months of the 2009/10 fiscal year, the central bank has been a net seller of USD 2.6 billion.
On Wednesday at 10:30 am, the partially convertible rupee was trading at 45.46/47 per dollar, weaker than its previous close of 45.375/385.