RBI Tightens Rupee Defense as Pricey Crude, Foreign Outflows Bite: USD/INR
The rupee is likely to advance on Monday, but sustaining the gains will be harder.
This websiteโs original language is English. For translation, click the globe icon or choose Translate in the menu.
7 matching records found
The rupee is likely to advance on Monday, but sustaining the gains will be harder.
The Reserve Bank of India is broadening its defenses to steady the rupee, taking some of its strongest measures since the 2013 taper tantrum. That may give the currency a boost as trading resumes Monday, but the question remains: how far is the central bank willing to go as external pressures mount?
A weak monsoon is raising food-price risks, while the falling rupee is making imports more expensive.
Indiaโs rupee retreated even after the central bank hiked interest rates for the first time in four years, as the lack of more aggressive steps to tighten liquidity and support the currency left traders disappointed.
Indiaโs foreign exchange reserves dropped by the most in almost two years as the central bank stepped in to support the rupee amid surging oil prices.
Indiaโs rupee has room to appreciate from the current levels, Reserve Bank of India Deputy Governor Poonam Gupta said, striking an optimistic note on the currency after a period of weakness recently.