<div>The rupee's fall to record lows has raised chances that the Reserve Bank of India will take more steps to support the currency, as a strategy built on tightening rupee money markets and raising short-term interest rates has had limited effect.<br /><br />The worst performing Asian currency of the year so far hit a new life low of Rs 61.80 per dollar on Tuesday, breezing past a previous low of 61.21 hit on 8 July. Central bank intervention helped the rupee recover, but by Wednesday, 7 August, it was sliding once again, to stand around 61.35 by 11 a.m.<br /><br />Below are the possible steps that the RBI or the government could take to support the currency.<br /><br /><strong>RBI Actions</strong></div><ul><li>FX intervention</li><li>Tighten liquidity further by:</li></ul><div>- Raising banks' statutory liquidity ratio of 23 per cent<br />- Further reducing how much banks can borrow from the RBI under the daily repo auction<br />- Reducing the amount of funds RBI provides to banks under the export refinance scheme at the repo rate<br />- Bond sales via open market operations<br />- Raising banks' cash reserve ratio, now at a record low 4 per cent</div><ul><li>Raise the policy repo rate, currently at 7.25 per cent</li><li>Provide a dollar-window for oil firms to pay for imports</li><li>Buy oil bonds from companies by paying dollars</li><li>Ask exporters to convert FX dollar holdings immediately</li><li>Ask importers to delay or stagger dollar payments</li><li>Curb speculation by cutting net open position limits</li><li>Persuade banks and financial firms to raise funds abroad</li></ul><div><br />Government Measures</div><ul><li>Raise foreign investment limits in debt</li><li>Increase duties on non-essential imports, like electronics</li><li>Attract money from Indian citizens abroad, or issue sovereign debt</li><li>Announce additional fiscal, economic reforms</li></ul><div><br />(Reuters)</div>