Dealers will closely monitor whether the rupee can sustain its mild gains since the RBI unveiled measures to drain liquidity by shoring up short-term interest rates.
Liquidity will be watched closely with the government set to sell 120 billion rupees in T-bills on Wednesday and 150 billion rupees in a debt auction next week.
India is also due to sell 236.6 billion rupees worth of government debt limit to overseas investors on Monday.
Should the rupee falter, investors will likely expect additional measures from the RBI or the government, such as a potential overseas bond issuance.
Posts
