The government and the Reserve Bank of India (RBI) will do everything to ensure that the rupee does not depreciate to "unreasonable levels", the finance ministry said Wednesday as the currency slid to a lifetime low of 72.91 to the dollar.

In the morning trade, the rupee collapsed to a lifetime low of 72.91 against the dollar, amid surging crude oil prices and unabated foreign fund outflows.

"Government and RBI will do everything to ensure that rupee does not slide to unreasonable levels. Today's correction seems to reflect that realisation," economic affairs secretary Subhash Chandra Garg tweeted.

He said there was "no fundamental rationale" for the rupee to depreciate to levels seen till Tuesday. "It reflected overreaction of market operators," Garg said.

After crashing to a lifetime low in early trade, the rupee rebounded by 69 paise to trade at 72.00 to the US dollar in late afternoon trade on suspected intervention by the central bank. The currency traded in a range of 71.86 to 72.91 in the day trade.

On Tuesday, after scaling a historic low of 72.74, the local unit, finally settled day at 72.69, showing a loss of 24 paise, or 0.33 per cent.