MarketsMonday, 24 February 2025·India
RBI to inject Rs 86,000 crore, Spot USD/INR rate may move to 86.30
RBI will conduct a USD-INR buy/sell swap auction on Feb 28 to inject Rs 86,000 crore into the banking system. The auction, aimed at meeting long-term liquidity needs, will involve a $10 billion swap with a three-year tenor.
The auction time has been fixed from 10.30-11.30 am on February 28, 2025. The spot date is March 4, 2025 and the far leg date is March 6, 2028.
This will result in a short-term positive impact on the rupee. The swap mechanism can help stabilise the currency by providing immediate liquidity support, thereby mitigating the pressure on the rupee during periods of foreign fund outflows.
This temporary relief can bolster market confidence and prevent excessive volatility in the exchange rate. Spot USD/INR rate can move towards 86.30.
The auction time has been fixed from 10.30-11.30 am on February 28, 2025. The spot date is March 4, 2025 and the far leg date is March 6, 2028.
This will result in a short-term positive impact on the rupee. The swap mechanism can help stabilise the currency by providing immediate liquidity support, thereby mitigating the pressure on the rupee during periods of foreign fund outflows.
This temporary relief can bolster market confidence and prevent excessive volatility in the exchange rate. Spot USD/INR rate can move towards 86.30.