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Indian Central Bank’s Rupee Gambit Aids Russia Trade – Mint

New RBI policy comes as rupee crashes to all-time lows against the US dollar, with analysts suggesting the move will help reduce pressure on forex reserves


The Indian rupee breached the key psychological level of 80 to hit a record low against the dollar on Tuesday.
The Indian rupee sank to 81.5 to the dollar on Monday and could fall even lower, analysts say, as its current account deficit is expected to widen while the dollar stays strong. File photo: Reuters.

 

India’s central bank has allowed traders to settle imports and exports in rupees, the domestic currency, in a move that some analysts said will facilitate trade with Russia, Mint reported.

The Reserve Bank of India’s new policy comes in the wake of the rupee crashing to all-time lows against the US dollar, with some analysts suggesting that allowing trading in the local currency will help reduce pressure on the nation’s foreign exchange reserves, the report added.

Read the full report: Mint.

 

 

 

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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