Anjali Kumari
Anjali Kumari
The liquidity deficit stood at Rs 2.87 trillion on Wednesday, according to the latest data from the RBI
Gross issuance may increase slightly due to large bond maturity, but is likely to stay within the range seen the past few years as the govt focuses keeping a lid on fiscal deficit
Government investment reached 4.1 per cent of GDP in FY23, the highest since FY12, while private sector investment as a share of GDP climbed to 11.9 per cent
The dollar index, which measures the strength of the greenback against a basket of six major currencies, fell by 0.8 per cent to 107.97
Moreover, the demand for Debt Capital Markets (DCM) products is underpinned by stable levels of bond maturities, comparable to 2024
RBI intervened in the foreign exchange market via dollar sales to avoid further depreciation of the rupee, dealers said
More changes likely in liquidity management framework
Tight liquidity conditions in the banking sector, influenced by foreign exchange market interventions, government cash flow fluctuations, and currency leakage, have exacerbated the deficit
The REER is expected to have declined further in January 2025, said market participants
It examined the effectiveness of the RBI's forex interventions and found that the primary driver of exchange rate volatility in India is the fluctuation in portfolio flows caused by global spillovers
Forward book dollar deficit ballooned to $58.9 bn
RBI receives bids for Rs 30.7K cr on Thursday against notified amount of Rs 50K cr
A narrowing trade deficit in December, down to $21.94 billion down from a record $31.86 billion in November, further bolstered market sentiment
Move to ease liquidity concerns; set to begin with Rs 50,000 crore
'Indian rupee, well-supported by the Reserve Bank of India (RBI) against extreme volatilities post-pandemic, is likely to recover beyond current challenges'
RBI's intervention policy unlikely to have changed
The rupee weakened to 86 per dollar from 85 in just 16 trading sessions. In contrast, its movement from 84 to 85 took 46 working days, while the shift from 83 to 84 happened in 478 days
The issuance has a base size of Rs 500 crore with a green shoe option of Rs 2,500 crore
The interaction is part of the pre-monetary policy consultations
Certificate of Deposit rates increased by 20-30 basis points across tenures during the same period