Rupee to get respite on RBI measures, Govt promises steps to attract foreign inflows

Rupee to get respite on RBI measures
The rupee is expected to get some respite this week as the Reserve Bank will be sucking more money out of the system beginning this Monday and the government promising more steps to woo foreign inflows to help partly fill the large current account gap.

The rupee is expected to inch up to 60 or even higher against the dollar this week, said many treasury officials.

"The rupee will be appreciating after the new measures (to sell Rs 22,000 crore worth of cash management bills every Monday) announced by the Reserve Bank," Jayesh Mehta, managing director and country treasurer for global markets group at Bank of America-Merrill Lynch told PTI.

"The runaway depreciation of rupee will not be seen as the government and RBI are committed. The rupee seems to stable this week with market looking at the additional measures," Ananth Narayan, head for fixed income, currencies and commodities at StanChart South Asia told PTI.

In its recent round of measures to curb volatility in foreign exchange market and salvage the battered rupee, the central bank had last Thursday said it would sell Rs 22,000 crore worth of cash management bills (CMBs) every Monday.

Dion Global Solutions Ltd.

Story first published: Monday, August 12, 2013, 9:10 [IST]
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