Reported 1 day ago
The Reserve Bank of India has increased its overnight fund injection to 2.50 trillion rupees ($28.85 billion) following significant interventions in the foreign exchange market aimed at supporting the rupee. This infusion is the largest in over a year and comes amidst a liquidity crunch in the banking system, which has been exacerbated by the RBI's aggressive dollar sales to stabilize the currency. Economists indicate that the tight liquidity conditions may hinder the effectiveness of recent interest rate cuts.
Source: YAHOO