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INDIA: RBI Intervenes in FX Market to Curb Build-Up of Speculation Postitions

INDIA
IndiaEM BulletBulletAPACEmerging Market News

The Reserve Bank of India intervened in the foreign exchange market this week to curb speculation in the rupee, Bloomberg report citing a person familiar with the central bank’s thinking, adding to widespread reports of intervention during the APAC session. 

  • The RBI decided to intervene on Monday and Tuesday after spotting an unusual buildup of speculative positions, which put added pressure on the local currency, the person said. The central bank won’t hesitate to intervene significantly and suddenly to prevent an accumulation in speculative bets, they added.
  • According to the head of treasury at Finrex Treasury Advisors who was cited by Bloomberg, it is estimated intervention could have amounted to as much as $11bln over the past two days, which are levels not previously seen from the authority.
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The Reserve Bank of India intervened in the foreign exchange market this week to curb speculation in the rupee, Bloomberg report citing a person familiar with the central bank’s thinking, adding to widespread reports of intervention during the APAC session. 

  • The RBI decided to intervene on Monday and Tuesday after spotting an unusual buildup of speculative positions, which put added pressure on the local currency, the person said. The central bank won’t hesitate to intervene significantly and suddenly to prevent an accumulation in speculative bets, they added.
  • According to the head of treasury at Finrex Treasury Advisors who was cited by Bloomberg, it is estimated intervention could have amounted to as much as $11bln over the past two days, which are levels not previously seen from the authority.