RBI battles to shore up rupee as currency hits all-time lows
Central bank deploys directive against lenders after FX reserves fall below $700bn
The Reserve Bank of India has taken steps to shore up the rupee, following swings in the value of the currency and concerns about capital flight.
On March 27, the central bank instructed lenders to cap their net open rupee positions in the foreign exchange market at $100 million by the end of each business day. The banks have until April 10 to comply with the directive.
The measure is designed to curb shorting of the rupee and incentivise banks to sell dollars as they unwind arbitrage positions
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