MUMBAI: The Indian rupee posted its biggest single-day loss in a month, hurt by data showing a widening trade deficit and a slump in local shares as part of a global market sell-off, but intervention from the central bank prevented steeper losses.

The local unit fell nearly 0.72 percent on Thursday and was the worst performer among Asian currencies as trading resumed after a holiday on Wednesday for state elections.

Worries that foreign investors would reduce their exposure are starting to weigh on sentiment, after strong buying in shares and debt had helped support the rupee so far this year.

The central bank had been active in the market for most of the day, but stepped up intervention as the rupee threatened to breach the 62-mark, traders said.

"The rupee is playing catch-up with other Asian currencies as it was outperforming them some days ago," said Anindya Banerjee, currency analyst at Kotak Securities in Mumbai.

"When they have catching up to do, the rupee and stocks traditionally overdo it," he added.