The markets had touched their highest levels in a month.
The RBI is still a small player in international gold buying among central banks. But in terms of total gold bought in 2019, it is the sixth largest buyer with 25.2 tonnes purchases in the first 10 months of 2019.
The dollar index eased 0.05 per cent to 98.69.
The rupee has declined by 24 paise in four days of losses.
The rupee edged higher by three paise to 66.46 against the US dollar in early trade on Wednesday.
The rupee closes 12 paise down against the dollar.
The rupee on Monday continued its upward march against the US dollar for the third day, firming up by another 10 paise to 66.00 on fag-end selling of the American currency by banks and exporters.
Forex dealers attributed the fall to increased demand for the dollar.
The rupee on Tuesday fell by 25 paise to 65.05 on fresh dollar demand from banks and importers despite persistent foreign capital inflows.
The rupee had lost 21 paise on Tuesday's trade.
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Chidambaram further said government has taken a number of fiscal and administrative measures from time to time to contain inflation especially food.
Weakness of dollar in the overseas market also boosted the domestic currency, a forex dealer said.
There is high demand for the US currency from importers
Extending losses for the second straight session, the rupee slipped by 11 paise at 66.54 against the US dollar.
The rupee had jumped by 16 paise to end at over two-month high of 61.71 against the greenback on good inflows in local markets and sustained dollar sales by exporters.
The rupee recovered from initial losses against the American currency and was quoted higher by 6 paise to 62.00 on fresh selling of dollars by banks and exporters in view of strong foreign capital inflows into equity market.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was sharply higher by 0.62 per cent at 93.96.
The domestic currency has tumbled by 104 paise, or 1.63 per cent, in last six trading days.
Dealers attributed the fall to the dollar's gains after China devalued yuan, which pushed up demand from importers for the US currency.
Firm equity markets and foreign capital inflows failed to restrict rupee's fall against the dollar
The rupee had plunged by 19 paise to close at over 3-week low.
The Indian benchmark S&P BSE Sensex today eased by 14.59 points, or 0.05 per cent after touching its all-time intra-day peak.
Forex dealers said besides the dollar gaining against other currencies in the global markets on the back of a strong US economy, increased demand for the American unit from importers weighed on the rupee but a higher opening in the domestic equity markets, capped the fall.
Increased demand for the dollar weighed on the local currency.
Increased demand for the American unit from importers weighed on the rupee
Rupee is seen strengthening against the dollar.
The domestic currency had last ended at 64.17 per dollar.
The dollar index was up by a whopping 0.45 per cent against basket of six major global rivals, which also pushed the rupee to log its biggest daily loss since September 15.
Rupee hits new low at close against dollar.
Bearish dollar overseas also supported the rupee
The rupee had snapped its 3-day losing streak on Thursday.
The local currency had surged 18 paise to 63.64 in Thursday's trade.
In cross-currency trades, the rupee firmed up further against the pound sterling
The Rupee is seen weakening further against the dollar.
The rupee on Wednesday strengthened by another 3 paise to 62.82 against the US dollar.
The rupee on Friday snapped its two-day gaining streak against the US dollar.
The Indian rupee on Friday rose for the fifth straight session against the Greenback and ended at 62.46.
Rupee gains for 4th day against dollar, up 17 paise on Fed stance.
Rupee ends flat against dollar ahead of Fed policy outcome.
On Monday, the rupee gained 16 paise.
