Home Commodity Market News RBI aims to curb FX volatility, no target level, says banking source

RBI aims to curb FX volatility, no target level, says banking source

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Informist, Wednesday, Jul 20, 2022

 

–RBI intervening in FX to avoid bumpy, jerky movement 
–RBI feels rupee reflecting underlying demand-supply 
–RBI won’t try to prevent rupee from aligning with fundamentals 
–RBI actively intervening in all FX market segments 
–RBI wants to ensure FX markets stay liquid 
–RBI wants to ensure FX markets function normally 
–RBI not trying to protect 80/$1 level or any specific level 
–RBI ready to meet genuine dollar requirements of market 
–RBI keen to stabilise expectations in FX markets 
–RBI focused on ensuring stable movement of rupee 
–RBI actively checking FX market positions of banks 
–RBI not seeing speculative position build up by banks 
 

By T. Bijoy Idicheriah

 

MUMBAI – The Reserve Bank of India is actively intervening to address any jerky movements in the foreign exchange market and ensure that it functions normally, rather than target a specific level of the rupee against the dollar, a banking industry source told Informist.

 

“It is not about protecting 80 per dollar level. It is stepping in to address the genuine dollar availability issue, and wants to keep the market liquid and functioning normally,” the source said.

 

On Tuesday, the Indian currency breached the psychologically-crucial level of 80 per dollar for the first time ever as foreign portfolio outflows continue amid fears of global recession.  More

 

Source: Cogencis

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