 "After disappointing measures, RBI resorts to selling dollars")
RBI sold dollars via state-run banks starting at around 56.90 rupees to prevent a further slide in rupee after measures announced to boost the economy disappointed.
India took a handful of measures to help prop up the embattled rupee on Monday, including increasing the limit on foreign investment in government bonds by $5 billion to $20 billion.
[caption id=“attachment_356418” align=“alignleft” width=“380” caption=“RBI sold dollars via state-run banks starting at around 56.90 rupees to prevent a further slide in rupee. Reuters”]
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On Monday, the partially convertible rupee was at 56.80/84 per dollar, after hitting a session low of 56.97 soon after the announcement.
The rupee was still stronger than its close of 57.12/13 on Friday, a day when the currency had dropped to a record low of 57.32.
Reuters