RBI mulls rate hike as rupee nears 97 against USD
The Indian rupee has slipped close to 97 against the US dollar, and the Reserve Bank of India (RBI) is now considering a possible interest rate hike to steady things.
Governor Sanjay Malhotra and his team are in talks ahead of their big policy meeting on June 3-5.
The RBI has previously made an out-of-cycle adjustment in May 2022, so quick moves aren't off the table.
RBI may seek $50B nonresident deposits
To boost confidence and bring in more US dollars, the RBI might launch special deposit schemes for nonresidents (which could pull in up to $50 billion) and is also eyeing sovereign dollar bonds, though those need government approval.
Just this week, they announced a $5 billion swap auction to help with liquidity.
Policymakers say the rupee's current value doesn't match India's strong economy or stable banks. They're focused on keeping it resilient so it can keep supporting growth.