India Rupee Completes Third Weekly Gain After RBI Tightens Cash
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India’s rupee completed its third weekly gain, the longest winning streak since February, after the central bank tightened the supply of cash to arrest a slide in the currency.
The Reserve Bank of India has raised two interest rates and restricted lenders’ access to funds in the past two weeks, pushing the benchmark 10-year bond yield to a 14-month high and leading to debt-sale failures. The measures “should be seen not as a precursor to a substantial change in monetary stance, which, thus far, has been on the easing side,” Raghuram Rajan, the top adviser in the finance ministry, said yesterday in an interview with Bloomberg India TV. The steps should be sufficient, he said.