Business Standard

May 10: RBI tries to curb rupee

An employee arranges rupee notes at a cash counter inside a bank in Agartala.

The Reserve Bank of India said exporters will be required to convert 50% of their foreign exchange holdings into rupees, in a move that traders say could boost the sagging local currency.

Exporters will also be allowed to buy foreign currency only after utilising all the foreign currency holdings in their accounts.

The rupee had hit an all-time low of 53.83 to the dollar on Wednesday and even RBI intervention wasn't enough to stem the currency's decline.

The political upheaval in Greece continued to hurt the sentiment across the world, as political parties haggled over chances of renegotiating the terms of a bailout. The weekend elections in France and Greece had seen voters reject harsh austerity measures.

Pictures by Reuters

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