For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Rupee gains 1% as RBI throws MSF lifeline

|
 Rupee gains 1% as RBI throws MSF lifeline
The rupee made stellar gains in trade as the RBI threw a lifeline by hiking the marginal standing facility for banks, which is likely to increase the carry over dollar costs and help the rupee.
 

The rupee gained 66 paise in trade or 1.1 per cent following the RBI move late on Monday. The Indian currency was last trading at 59.26 against the dollar.

The RBI decision to hike the MSF is to ensure that speculators do not short the Indian currency, which would then give a big boost to the rupee.

The Indian rupee has been one of the worst performing Asian currencies in the last few months, thanks to a high current account deficit.

"The market perception of likely tapering of US Quantitative Easing has triggered outflows of portfolio investment, particularly from the debt segment. Consequently, the Rupee has depreciated markedly in the last six weeks. Countries with large current account deficits, such as India, have been particularly affected despite their relatively promising economic fundamentals. The exchange rate pressure also evidences that the demand for foreign currency has increased vis-a-vis that of the Rupee in part because of the improving domestic liquidity situation, the RBI said in its statement.

GoodReturns.in

Read more about: rbi dollar
Story first published: Tuesday, July 16, 2013, 9:09 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more