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Rupee Reclaims Earlier Losses

INR

After initially opening higher, USD/INR has dropped as the rupee strengthened, the pair last down 0.1912 at 73.2768. Helping support INR is inflows into stocks, which saw outflows of around INR 85bn on Friday.

  • There is also chatter of state run banks selling USD on behalf of the RBI. We flagged earlier that the RBI bought $3.99bn of FX in spot market in December, USD/INR fell 1.32% in the period, the sharpest drop since August 2020. RBI's net outstanding forwards FX book rose to $39.8b as of end-Dec. from $28.3b in the previous month

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