The Reserve Bank says, it will take all measures to defend rupee if situation warrants. RBI Deputy Governor Subir Gokarn told a CII event that selective intervention of the bank in recent days should not be misconstrued as its inability to deal with the challenge. He said RBI has the instruments and capacity to step up the supply of foreign exchange into the market and it will use them appropriately. Rupee touched an all-time low of 52.73 to an American dollar 10 days ago as global concerns made investors rush to the comfort of the greenback. However, it gained over 3 per cent since then and closed at 51.20 to a Dollar on Friday.