RBI burns foreign reserves to prevent rupee from breaching Rs 80 against dollar
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Mumbai: The Reserve Bank of India is reportedly burning its foreign exchange reserves in an unprecedented pace, which is not so even during the taper-tantrum period in 2013, to makethe rupee firm against the global economic impact.
The economists are of the suggestion that the larger pool of reserves can help the rupee to firm up against the offshoot of global impact to a certain extent.
India's import cover has nosedived over $80 billion since the Ukraine crisis, with more than $2 billion fall in the latest week as the Reserve Bank of India sold dollars to shore up the rupee from breaching the 80-per-dollar level.
According to data, the foreign reserves against India's import has registered a whopping fall of over $80 billion since the Ukraine crisis, with more than $2 billion fall in the latest week as the Reserve Bank of India sold dollars to shore up the rupee from breaching the 80-per-dollar level.
A net of $19 billion was sold in July alone, the most recent data available, and intervention remained heavy in August when the rupee fell below 80 against the dollar, traders said.