The Reserve Bank of India increased foreign-exchange intervention last week, selling at least $8 billion and possibly as much as $15 billion to support the rupee, according to six bankers. The currency rose to a more than two-month high of 94.2850 on September 3, recovering from a May low of 96.96. Policy measures, including discounted hedging for overseas borrowing by state-run companies and banks and free hedging for banks raising overseas foreign-currency deposits, have attracted more than $136 billion in inflows. India’s foreign-exchange reserves stood at a record $740.8 billion through August 21, while J.P. Morgan estimated they had likely exceeded $750 billion since then. Dollar sales also remove rupee liquidity from the banking system, potentially helping prevent interbank borrowing costs from falling below the policy rate and weakening monetary-policy transmission. Bankers said importers have increased forward dollar purchases while exporters have delayed sales because of persistent rupee weakness. Analysts do not expect the rebound to begin a sustained appreciation cycle: Goldman Sachs sees the currency remaining in a narrow medium-term range and expects the RBI to use future inflows to reduce forward foreign-exchange liabilities, which three economists estimate have likely surpassed $200 billion.