Reuters Market Eye - Bank of America-Merrill Lynch estimates that the RBI can sell up to $30 billion to support the rupee, though adding every dollar sold would further raise concerns about India's foreign exchange reserves.
BofA estimates a round of FX volatility typically costs RBI, whether via forwards and/or spot market interventions, about $15 billion.
On the other side of the trade, Bank of America-Merrill estimates that the RBI can afford to buy $9 billion in FY14 according to its balance of payments estimates and mobilize the rest via overseas bonds targeted at overseas Indians.
The bank tips RBI to defend 60/dollar for now.
India's foreign exchange reserves rose to $290.66 billion as of June 14, which analysts say is enough to cover about seven months of imports.
(Reporting by Subhadip Sircar)
