The Reserve Bank of India today reined in a falling rupee by seeking the details of dollar-buying positions of commercial banks in the foreign exchange market. | |
| The regulator's verbal intervention resulted in heavy selling by banks that had built up huge dollar positions. Consequently, the spot rupee that had slipped to 45.41 to a dollar during the day, closed at 45.15/16, almost unchanged from yesterday's closing level. |
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| According to foreign exchange dealers, the intervention was prompted by huge arbitraging by market players between the domestic foreign exchange market and the overseas derivatives market known as the non-deliverable forward (NDF) market. |
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| The government securities market turned bearish today due to a higher cut-off yield announced by the RBI in the 91-day and 182-day treasury bill auctions. |
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