The Indian rupee rose today after the central bank took measures to limit banks’ access to cash in an attempt to halt the currency’s slide. The rupee reacted favorably to the bank’s action.
The Reserve Bank of India announced yesterday several measures to address the exchange market volatility. The RBI limited amount banks can borrow in repurchase actions (the Liquidity adjustment facility) to 0.5 percent of their deposits. Additionally, the central bank set the Cash Reserve Ratio, which was previously at 70 percent, to 99 percent.
USD/INR rose from 59.7605 to 59.0900 as of 14:11 GMT today.
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