The Second Trading Day Of Month Report By Rudra Investment Best Commodity Tips Provider Rupee plunged by 20 paise to 69.36 against the US dollar in early trade on Tuesday due to the strengthening of the dollar. Meanwhile, the Reserve Bank of India (RBI) on Monday said that it will again put a $ 5 billion capital to the domestic banking system through the dollar-rupee purchase-sale swap process.
The Reserve Bank will put this money back in the banking system over a period of three years. From April 23, the Dollar-Rupee purchase-sale swap process will begin. For the second time in a month, the Reserve Bank is going to take such a step.
According To Best Commodity Tips Provider, The news of swap auction came in the market before the RBI meeting. This week's meeting of RBI on the issue of interest rates is this week. It is believed that the central bank can take a decision to cut interest rates in this policy meeting. Apart from this, further signs of softening in rates from RBI may put pressure on the rupee. However, the swap auction process will increase India's foreign exchange reserves. However, there is a concern also that using forex swaps, RBI may reduce investment in the debt market.
Rudra Investment Financial Services said, "Today, the dollar exchange rate is expected to bid in the range of 69.20 and 69.80." Despite weak retail sales figures from the US, the dollar continues to be stronger than other major currencies. This week, the upturn in the dollar may increase because important data of non-form payroll will continue in the US. Better than expected, the dollar may continue to grow faster.
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