The Indian central bank's moves to liberalise foreign exchange inflows are unlikely to offer much immediate support to the floundering rupee as inflation pushes higher and the current account deficit threatens to balloon towards multi-year highs.
The Reserve Bank of India announced a slew of measures on Wednesday to bring in a fistful of dollars, including allowing overseas investors to buy short-term corporate debt and opening of more government securities under the fully accessible route.
The steps came after the RBI's foreign exchange reserves fell by more than $40 billion over the past nine months, largely due to its intervention in the currency market to curb rupee losses.
