RBI governor Duvvuri Subbarao said that India may intervene in the foreign exchange market if capital inflows are "lumpy and volatile" after the rupee completed a sixth weekly gain.

Subbarao said that the RBI has not found the need to intervene so far and will come into the picture only if the forex market is lumpy and volatile.

From Timesofindia.indiatimes.com:

"If the inflows are lumpy and volatile or if they disrupt the macroeconomic situation, we will do so," Subbarao said in a panel discussion at the International Monetary Fund in Washington on Saturday. He told reporters that "we've not found the need to intervene so far".

The rupee has gained 5% against the dollar in the past month, making it Asia's best performer, as global funds pumped a record $21 billion into Indian stocks this year.

India has emerged as the best performer in the Asian circuit recently and the Indian Rupee has gained 5 percent against the dollar in the past month.