The Reserve Bank today swung into action to check slide in rupee value against dollar and speculations. It has imposed restrictions with immediate effect on forward trading in the local currency by Foreign Institutional Investors and traders and capped banks exposure to the forex market.

The Reserve Bank has also decided to withdraw the facility of re-booking forex contracts by companies and reduced across-the board exposure limits of banks which are authorised to deal in the foreign currency.

The central bank said these steps have been taken in view of the developments in the foreign exchange market.

Rupee today slipped to sub-54 level for the first time in its history and touched a low of 54.30 against the dollar. In the last nearly four and half months, the rupee has declined by about 20 per cent against the dollar.

Finally, it staged a smart recovery to settle seven paise higher at 53.64 after a highly volatile trade.