Downside risks to the Indian rupee still persists despite some suspected interventions in the foreign exchange market by the country's central bank, global ratings agency Moody's said on Tuesday.
"A number of central banks across the Asian region have likely intervened on foreign exchange markets," Moody's Economy said.
"The Bank of Korea, Bank of Thailand, Bangko Sentral ng Pilipinas and Reserve Bank of India are all suspected to have sold US dollars to boost domestic currencies in order to contain inflation," the agency added.
"There is still considerable downside risk to the Indian currency in the coming weeks." The assessment comes against the backdrop of India's annual rate of inflation shooting up to a 13-year high to a double-digit level of 11.05 per cent in recent weeks.
"Although the Indian rupee strengthened to 42.96 to a US dollar, continued inflationary concerns in the emerging economy - especially after wholesale price growth accelerated to a double-digit rate - will continue to weigh on investor sentiment."