Reserve Bank of India (RBI) Deputy Governor H R Khan said the central bank will take every step required to stem the plunge of the domestic currency.

"We are watching and monitoring the situation...All steps that need to be taken will be taken," Khan said today.

He also said that the central bank is in touch with the Finance Ministry on the issue.

The rupee had lost more than 8% since the first week of May, after the US Fed indicated it may start scaling back its monetary stimulus programme later this year. It closed at a life-time low 59.57 per dollar yesterday after touching an intra-day low of 59.985 per dollar on the back of dollar demand from importers.