 "Reserve Bank of India")
Traders counting on the Reserve Bank of India (RBI) to keep buying dollars may have to think again.
The central bank bought $36 billion of foreign exchange in the 12 months to January, seeking to stem the rupee’s appreciation. That’s likely to change given India’s widening current-account deficit and slowing capital inflows, with Rabobank saying the RBI may instead look to use some of its $420 billion of reserves to plug the dollar spending gap.
India is losing some of its red-hot appeal to foreign investors as a bank scandal, a widening fiscal deficit and the prospects of
The central bank bought $36 billion of foreign exchange in the 12 months to January, seeking to stem the rupee’s appreciation. That’s likely to change given India’s widening current-account deficit and slowing capital inflows, with Rabobank saying the RBI may instead look to use some of its $420 billion of reserves to plug the dollar spending gap.
India is losing some of its red-hot appeal to foreign investors as a bank scandal, a widening fiscal deficit and the prospects of
