The Reserve Bank of India (RBI) was likely selling dollars to support the rupee on Monday, after the Rupee plunged to its all-time low, traders said.

The US dollar surged on expectations that the Federal Reserve will not cut rates by much this year, Reuters reported quoting traders.

The rupee was at 86.36 per U.S. dollar as of 10:15 a.m. IST after hitting its all-time low of 86.39 earlier in the day.

State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India, traders said.

The RBI seems to be “letting it (USD/INR) move up till bids thin out a little and then stepping in to cap the rise,” a senior trader at a bank said.

The dollar index was up 0.2% at 109.9 while most Asian currencies weakened.

The dollar was boosted by robust U.S. jobs data, leading to expectations that the Federal Reserve will proceed cautiously with rate cuts this year-Reuters