India’s currency and debt markets will remain closed on Monday, April 1, for a holiday. Trading will resume on Tuesday, April 2. The markets were also closed on Friday. The Indian rupee slightly declined by 0.03% to close at 83.40 per U.S. dollar on Thursday.
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India’s foreign exchange regime is under fire from the IMF. The reclassification to a ‘stable’ exchange rate regime has implications for the RBI’s actions and India’s economy. This article explores the potential impact on markets and discusses whether the IMF’s view matters to RBI’s forex policy framework.
Liquidity in the banking system in India has reached its lowest level in nearly six months, causing borrowing costs to rise. Outflows from corporate advance taxes and the Reserve Bank of India’s efforts to stabilise the rupee have drained lenders of funds. The liquidity situation is expected to improve by the end of the week.
