RBI weighs rate hikes and dollar swaps to steady rupee
Business
The Indian rupee has been slipping against the US dollar, and the Reserve Bank of India (RBI) is stepping in.
They're considering raising interest rates, doing more dollar-rupee swaps, and tapping into funds from nonresident Indians or sovereign bonds to help steady things.
The RBI's big policy meeting runs June 3-5, so we'll know more soon.
RBI considers $50 billion nonresident deposits
If this all sounds familiar, it's because the RBI used similar tactics during the 2013 "taper tantrum."
This time, nonresident deposit schemes could raise up to $50 billion, way up from $30 billion last time, and a recent $5 billion currency swap was aimed at boosting dollar reserves.
The goal is clear: show off India's solid economic fundamentals and keep the rupee from sliding further.