Aided by intervention from the Reserve Bank of India, the rupee rebounded on Monday to settle at 89.20 against the US dollar after slumping to a lifetime low of 89.66 on Friday.

The currency opened at 89.46 at the interbank forex market and traded between 89.05 and 89.50 before closing at 89.20.

According to a Reuters report, foreign exchange advisory firm IFA Global said the central bank may have been conserving reserves to intervene at higher levels of the exchange rate.

RBI Governor Sanjay Malhotra said in an interview with Zee Business that the recent decline in the rupee has been natural, and though the RBI intervenes to manage excess volatility in the currency, a 3-3.5% annual depreciation in the rupee is in line with the historical average.