Market News
Exclusive: India central bank to tolerate weaker rupee as inflows dry up, sources say - REUTERS
By Jaspreet Kalra, Swati Bhat and Nimesh Vora
Summary
- RBI intervenes to curb volatility, not defend specific rupee levels, sources say
- Rupee hits record low of 90.42, down 5.5% this year
- Foreign investors sold $17 billion in Indian stocks this year
MUMBAI, Dec 4 (Reuters) - India's central bank will tolerate a weaker rupee as the country's external sector confronts multiple headwinds including a wider trade gap and stalling of dollar inflows into the world's fifth-largest economy, three sources familiar with the central bank's thinking told Reuters.
The Reserve Bank of India (RBI), which had supported the rupee through aggressive interventions via dollar sales until last month, has allowed the rupee to fall 1.3% in the last seven trading sessions to a record low of 90.42 per dollar.
