RBI Steps up Interventions to Prevent Rupee Gains

Rupee had gained for seven straight sessions to Tuesday on large dollar inflows into equity and debt markets.
RBI Steps up Interventions to Prevent Rupee Gains

** Indian rupee has gained substantially since hitting a two-month low of 63.0025 on March 13.

** That has forced heavy intervention from RBI, capping what could have been broader gains - traders.

** Expectation Fed will remain cautious on rate hikes benefiting rupee.

** Rupee had gained for seven straight sessions to Tuesday on large dollar inflows into equity and debt markets.

** It had gained around 1 percent vs USD during this phase.

** Unit is broadly seen holding in a 61.50 to 63.00 range in near term.

** "There are huge flows but RBI is there like a rock. They can't depreciate the currency, all they can do is stop it from appreciating by buying dollars to support exports," says head of foreign exchange trading at large private bank.

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