India asks banks to stop making large bets against rupee, sources say
Updates to add details, background and graphic
By Jaspreet Kalra and Nimesh Vora
MUMBAI, Oct 7 (Reuters) -India's central bank has asked state-run and private lenders to refrain from betting heavily against the rupee in an effort to support the currency which has been teetering near record-low levels for the past three trading sessions, four sources said.
The Reserve Bank of India (RBI) informally communicated the instructions to bankers via phone calls on Monday with the rupee at risk of breaching its record low of 83.9850 per U.S. dollar, the sources said.
The RBI has asked banks to avoid large bets against the rupee and the instructions are a form of "oral intervention" by the central bank, a senior banker at a private bank said.
The news has not been previously reported.
The sources declined to be identified as they are not authorised to speak to the media. The RBI did not immediately respond to a mail requesting comment. Reuters could not ascertain the full list of banks the RBI called.
The central bank steps in occasionally to support the rupee via moral suasion and had last done something similar in early August.
The rupee has been under pressure because of a surge in portfolio outflows, higher oil prices and strength in the dollar after U.S. economic data diminished hopes of large rate cuts by the Federal Reserve.
Overseas investors have pulled out about $4 billion from Indian stocks over the last four sessions while Brent oil prices have climbed to their highest since August, fuelled by concerns of a wider conflict in the Middle East.
But the "central bank has made its intentions clear about defending 84 and is unlikely to allow a breach of it soon", a senior banker at a state-run bank said, referring to the central bank's instructions on Monday.
The RBI has also intervened in the non-deliverable forwards and local spot market, traders said.
The central bank's defence has meant the rupee has fallen 0.3% over last week while its Asian peers have declined between 0.6 to 2.7% in the same time period.
"We expect RBI to remain an important player and cap any sharp moves in INR both ways," MUFG Bank said in a note on Monday.
RBI's interventions have helped rupee stay stronger than 84/USD https://reut.rs/3Ng2Rms
Reporting by Jaspreet Kalra, Nimesh Vora; Editing by Savio D'Souza and Mrigank Dhaniwala
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
