Finance Minister Pranab Mukherjee yesterday said the government is taking steps to arrest the volatility in the foreign exchange market and the Reserve Bank of India, RBI will intervene when necessary.

The rupee has lost over 22 per cent since the beginning of the year. To check the sliding rupee, the RBI has taken a number of policy steps to increase dollar flows, including relaxing interest rate caps on non-resident deposits.

It had also asked exporters to convert half of their foreign currency earnings into rupees.