The Reserve Bank today swung into action to check slide in rupee value against dollar and speculations. It has imposed restrictions with immediate effect on forward trading in the local currency by Foreign Institutional Investors and traders and capped banks exposure to the forex market. The Reserve Bank has also decided to withdraw the facility of re-booking forex contracts by companies and reduced across-the board exposure limits of banks which are authorised to deal in the foreign currency.

The central bank said these steps have been taken in view of the developments in the foreign exchange market.

Rupee today slipped to sub-54 level for the first time in its history and touched a low of 54.30 against the dollar. In the last nearly four and half months, the rupee has declined by about 20 per cent against the dollar.

Finally, it staged a smart recovery to settle seven paise higher at 53.64 after a highly volatile trade.

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Category : Fema / RBI (3237)
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Tags : reserve bank of india (719)

0 responses to “RBI swung into action to check slide in rupee value against dollar”

  1. Ramanathan Venkatraman says:

    The Rupee breached Rs 54 mark to a $, the highest ever. Though the Rupee was devaluing against the Dollar, the export seemed boyanant while import-export gap saw a 50% divide. Current a/c deficit apart, unbridled import, dithering cost of petroleum products, non availability of edible oil when more than 50% is imported, a morbid paralysis of governance due to plethora of issues starting from 2G,CWG,Lokpal, Mullaperiyar, Reddy problem of Andhra . BJP’s adamant negativism , Congress inertia, lack of a statesman in the helm of affairs, has seen a pitiable growth story in 2011-12. If money has to be found for populist schemes, output must increase, it cannot go negative(mfg growth). Indian mfg units are idlying their capacities beyond 50%. Book orders are there, but in reality, orders hv been put on hold. Bilateral trade partner USA and Europe is in cold economic winter. If this paralysis continue, economic hummrage is not far away!

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