It appears the Reserve Bank of India is escalating interventions to prevent rupee gains.

The rupee has gained substantially since hitting a two-month low of 63.0025 on March 13. That has forced heavy intervention from the RBI, capping what could have been broader gains, say traders.

It is expected that Fed will remain cautious on rate hikes, benefiting the rupee.

The rupee had gained for seven straight sessions to Tuesday on large dollar inflows into equity and debt markets. It had gained around 1 per cent against US dollar during this phase.

The unit is broadly seen holding in a 61.50 to 63.00 range in near term. "There are huge flows but the RBI is there like a rock. They can't depreciate the currency, all they can do is stop it from appreciating by buying dollars to support exports," said head of foreign exchange trading at large private bank