The RBI sold at least $8 billion of foreign currency last week to shore up the rupee. Know why pressure on rupee is increasing.
heavy interference in the foreign exchange market; Effort to reduce the increasing pressure on the rupee against the dollar.
Mumbai. The Reserve Bank of India last week limited the foreign exchange market to prevent a sharp fall in the rupee. 8 billion dollars Sell.
According to banking sources, RBI tried to keep the rupee stable by increasing the supply of dollars. The pressure on the rupee has increased due to the rise in global oil prices, strong dollar and fluctuations in foreign investment.
The RBI generally does not target a fixed exchange rate, but intervenes in the market to control excessive fluctuations.