RBI Sells Dollars To Defend Rupee To 96.4575 As Brent Oil Clears $90
The Reserve Bank of India sold U.S. dollars in both onshore and offshore markets to defend the rupee after the currency slipped to a record low of 96.4575 per dollar. The intervention was triggered by Brent crude oil crossing $90 a barrel on Monday, rising more than 20% in two weeks as U.S. and Iran military strikes escalated.
The currency pressure has already reduced India’s foreign-exchange reserves to $675 billion, down from a February peak of $728.5 billion. To replenish cash, the central bank is running a special deposit program for nonresident Indians offering up to 7% tax-free interest on dollar accounts, while the country’s 10-year bond yield jumped 4 basis points to 6.82% following the market intervention.
From the sources (5 posts)
@businessThe Reserve Bank of India has embarked on a drive to attract deposits from the country’s 35 million-strong diaspora to shore up the rupee and replenish foreign-exchange reserves depleted by the US-Iran war
@barchartJUST IN 🚨: Reserve Bank of India intervenes to prevent collapse of their Rupee currency 🤯
@businessIndia’s central bank stepped into the foreign exchange markets to support the rupee after the currency weakened toward a record low as a renewed surge in crude prices weighed on sentiment
@bulltheoryioINDIA'S CENTRAL BANK JUST SOLD U.S. DOLLARS TO STOP THE RUPEE FROM HITTING A NEW ALL TIME LOW. The RBI sold dollars in both offshore and onshore markets today after the rupee slid to 96.4575 per dollar, dangerously close to its all-time lo
@reutersIndia FX traders eye oil prices, RBI defence; bonds bulls await index decision