Indian Rupee, Bonds, Stocks Advance on RBI Swap Plans
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India’s rupee jumped after the new central bank governor took steps to boost dollar supply and lawmakers moved closer to allowing foreign investment in pension funds. Stocks surged, while government bonds fell.
In his first briefing after taking office, Reserve Bank of India Governor Raghuram Rajan announced a plan yesterday to provide concessional swaps for banks’ foreign-currency deposits, a move that will boost the authority’s reserves by $10 billion, according to Bank of America Merrill Lynch. India’s lower house of parliament passed a bill yesterday allowing international holdings in the nation’s pension funds as the government tries to revive the economy and shore up the rupee.