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Banks parked 12.8 billion rupees at the central bank through an open market auction at an average of 10.
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84 percent, while a further 3.9 was placed in the 10.50 percent repo window.
The (usually 19.0 percent) reverse repo window showed 2.1 billion rupees of advances. The central bank's stock of Treasury bills was at 130.8 billion rupees on January 05.
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The rupee gained as much as 113.
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55 following the first significant intervention seen since the rupee was effectively 'floated' in the second week of December.
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The rupee closed at around 113.
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70/90 dealers said.
The volatility of the rupee has increased after the central bank cut overnight trading limits of commercial banks and the depth of market making capacity in the market narrowed.
Inter bank market were liquid with overnight call rates at 13.00 to 13.50 percent, dealers said though some deals had gone at 19.0 percent.