Rupee appreciates on RBI measures - IIFL

Dollar/rupee opened down after the Reserve Bank of India unveiled a slew of measures to support the local currency against the greenback amid lower than forecast retail sales in the US, which may force the Federal Reserve to delay tapering of fiscal stimulus.

The central bank also curbed banks' borrowing from Liquidity Adjustment facility at 1% of net demand and time liabilities or Rs 750 billion and also announced plans to sell bonds to suck out liquidity to make the local currency attractive.

Meanwhile retail sales in US expanded 0.4%, less than the 0.8% forecast compared to 0.6% a month earlier, which could also provide some respite to the rupee.

Source : Equity Bulls

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