RBI likely to sell dollars to prevent further fall of Indian Rupee

- Advertisement -

The Reserve Bank of India is likely selling dollars once again via state-run banks to make sure the rupee does not slip to a record low, four traders told Reuters on Friday.

The rupee was at 83.24 to the U.S. dollar, barely changed from the previous session.

How sale of dollars by RBI helps in reducing fall of Rupee

For instance, the RBI offers to sell $100 million at the cost of Rs 80 per dollar. And then seeing the interest of the currency market, it announces that it will sell off $200 million more, hence, the buyers get an opportunity to buy more US dollars at a time when demand for it is very high.

- Advertisement -

However, by doing so, the rupee in the currency market gets reduced by Rs 8,000 million, so there is less rupee left in the market. And lower supply of the rupee causes the value of the rupee to rise or it gets costlier.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Bank Manager took Massage inside branch, Video goes viral

Bank Manager took Massage inside branch, Video goes viral

Rs.975 crore Bank Fraud: ED arrests chairman of company in Mumbai

Rs.975 crore Bank Fraud: ED arrests chairman of company in Mumbai

Case filed against SBI Manager in Death of Electrician

Case filed against SBI Manager in Death of Electrician

Funding for Fintech Companies decreased by 99%: Report

Funding for Fintech Companies decreased by 99%: Report

MTNL Defaults on Rs 37.5 crore Loan from Punjab and Sind Bank, Government Steps in

MTNL Defaults on Rs 37.5 crore Loan from Punjab and Sind Bank, Government Steps in

Dividend paid by PSU Banks to Government, Check Bank Wise Amount

Dividend paid by PSU Banks to Government, Check Bank Wise Amount

National Housing Bank Recruitment 2024, Check Vacancies and Apply Online

National Housing Bank Recruitment 2024, Check Vacancies and Apply Online

Scheduled Commercial Banks’ Business in India: RBI Data

Scheduled Commercial Banks' Business in India: RBI Data

FIR against Union Bank Officer for making Fake Marriage certificate

FIR against Union Bank Officer for making Fake Marriage certificate

10 Banks in India faced minor disruptions due to Microsoft Outage

10 Banks in India faced minor disruptions due to global tech outage

Latest News