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USD/INR Fades Into the Close, Preceding RBI Verbal Intervention

INDIA
  • Reuters cites banking sources in reporting that the Reserve Bank of India had asked some banks to refrain from taking fresh non-deliverable forward arbitrage positions. The report goes on to say "The RBI has told us not to take new outright arbitrage positions, [but] Swap arbitrage positions are still allowed." The piece adds that the directions were verbally communicated, but there has been no written communication.
  • USD/INR accelerated losses into the local close, closing lower by 0.3% on the day and erasing early gains. The marks the biggest downtick in the pair since March, closing the gap with the August 3rd low.

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