India Prepares to Counter Rupee’s Slide
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India boosted the amount of government bonds foreign investors can purchase by $5 billion, seeking to bolster demand for the rupee after it tumbled to a record low against the dollar.
Foreign institutional investors can now purchase $20 billion worth of government securities, up from $15 billion, the Reserve Bank of India said in a statement today. Long-term overseas buyers such as sovereign wealth funds, central banks and pension funds will be allowed to invest in the debt directly to broaden the base of investors, the Reserve Bank also said.