Reserve Bank of India $5bn swap draws $9.8bn in bids
Business
The Reserve Bank of India just ran a $5 billion dollar-rupee swap auction, and it got almost double the bids, $9.8 billion in total.
Out of 254 bids, RBI picked 141 and set the premium cutoff at 9.10 rupees.
This three-year swap is meant to boost rupee liquidity, with the first settlement happening this Friday.
Three-year dollar-rupee premiums fall to 9
Right after the auction, three-year dollar-rupee premiums dropped to 9 rupees, and short-term bond yields climbed as investors started bracing for possible rate hikes.
RBI's move is all about keeping the rupee stable by releasing dollars from its reserves, a strategy that's helped the currency bounce back from record lows recently.