MUMBAI: Global market tides have swept rupee close to an all-time low, raising current account financing and inflation risks, but for now policy makers are more likely to use small-scale intervention and administrative measures to defend the currency.

The rupee fell 4.8 per cent last month, and was the worst performing Asian currency as the dollar rallied broadly on speculation that the Federal Reserve will begin reducing its monetary stimulus later this year.

Trading at 56.65 per dollar on Tuesday, the rupee is not far from a record low of 57.32 hit on June 22, 2012.