Rupee gains against the dollar at Rs 59.50 on RBI moves

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, July 24, 2013, 9:09 [IST]

The rupee opened the day higher against the US Dollar at and was trading at 59.50 as RBI's moves to tighten liquidity saw some gains in the currency.

The rupee had closed at Rs 59.75 on Tuesday. The Reserve Bank of India (RBI) in its bid to fight the falling rupee has squeezed liquidity again by announcing a fresh set of measures late on Tuesday.

The RBI cut the money it lends to banks under the liquidity adjustment facility (LAF) to 0.5 per cent of the deposits of a bank. This is as against 1% or Rs 75,000 crores available for the entire banking system.

"The overall limit for access to LAF by each individual bank is set at 0.5 per cent of its own NDTL outstanding as on the last Friday of the second preceding fortnight. This measure will come into effect immediately, i.e., from July 24, 2013 and will remain in force until further notice," the RBI has said in a release.

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