RBI announces $5 billion USD/INR swap auction
pre-market1 source ↓written by the desknot a recommendation
- to address liquidity
- $5 billion USD/INR swap auction
- into the system
- ₹42,000 cr
- recently fell
- 96.96 per USD
- for the swap
- 3-year tenor
The RBI has announced a $5 billion USD/INR swap auction to address liquidity issues in the banking sector. Scheduled for May 26, 2026, this measure aims to inject approximately ₹42,000 cr into the system amid a decline in the rupee, which recently fell to 96.96 per USD. This move is crucial as it comes in response to rising crude prices and significant foreign fund outflows from equities.
• 3-year tenor for the swap auction
• Banks will sell dollars at the spot rate, buying back at a premium
This initiative may stabilize the rupee and improve market sentiment.
Not investment advice. For informational purposes only.