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RBI decides to intervene in currency future derivatives

By Religare
|

Ahead of the US Federal Reserve's two-day policy meet next week in which the world's top central bank is set to lift interest rates for the first time in almost a decade, the Reserve Bank of India has decided to intervene in the domestic foreign exchange market as and when required in order to manage excessive volatility and to maintain orderly conditions in the market.

"As a further measure it has been decided to intervene in the Exchange Traded Currency Derivatives (ETCD) segment, if required," RBI said in a notification.

 

The data for the ETCD intervention will be published in the RBI monthly Bulletin as in the case of Over-the-Counter (OTC) intervention, it said in a press release.

Markets is likely to witness some volatility this week as better-than-expected US macro data pushed the case for a maiden interest rate hike since 2006, next week, as higher interest rates in the US risk diverting capital back to the US.

Story first published: Thursday, December 10, 2015, 23:00 [IST]
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