Indian Rupee: RBI move tightens liquidity – BNY
BNY’s Geoff Yu notes that India’s bonds sold off after the Reserve Bank of India (RBI) unexpectedly advanced closure of its special Dollar deposit window to end-August.
BNY analyst Geoff Yu reports that following the Reserve Bank of India's (RBI) early closure of its special dollar deposit window, the Indian Rupee (INR) experienced a liquidity squeeze. This abrupt decision has implications for bond yields and the INR's value. The 5-year yield climbed by 9 basis points to 6.44% while the 10-year yield increased by 4 basis points to 6.80%. The revised closure date of August 31, down from September, could slow reserve accumulation and curb INR appreciation.
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