The RBI need not intervene in the forex market as of now to prop up a weakening rupee, the chief economic adviser in the finance ministry said on Friday.
The rupee ended at 51.17/18 to the dollar on Thursday, after touching the day's low of 51.28, a level not seen since January 16. The unit had closed at 50.66/67 on Wednesday.
"This is not that place where I would recommend intervention," Kaushik Basu said.
The rupee pared some of the losses on Thursday on suspected dollar sales by the central bank.
"I have, for a long time, felt that rupee being at a level it is, is not unnatural at all, given the fact that India has had greater inflation than the US," Basu said.
Money markets were closed today.