Indian rupee falls

The Indian rupee dropped sharply on Wednesday to touch its weakest level against the dollar since 2013, as China's move to devalue the yuan sparked fears of a global currency war. The partially convertible rupee weakened to as much as 64.66 per dollar shortly after trading opened, its weakest level since September 2013, when the country was in the midst of its worst currency turmoil since the 1991 balance of payment crisis.
The rupee was trading at 64.65/66 per dollar by 0337 GMT, weaker than its 64.19/20 close on Tuesday. The Reserve Bank of India (RBI) started to sell dollars through state-owned banks at around the 64.85 level to slow the falls in the rupee after the domestic currency hit a 23-month low, three traders said. RBI Governor Raghuram Rajan has previously said the central bank would not target a specific exchange rate and would only intervene to smoothen volatility.