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The Economic Times
The Economic Times

RBI's rupee defence may drain banking liquidity, ease currency pressure

Mumbai, The Reserve Bank of India's (RBI) measures to curb rupee volatility could ease near-term depreciation pressure and help withdraw surplus liquidity from the banking system, according to research reports.

The measures, including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions, are expected to reduce dollar demand in the spot market and curb speculative positions against the rupee.

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