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Rajan Spurs Surge in India’s Reserves to Support Rupee: Economy

India’s biggest jump in foreign-exchange reserves in two years offers the nation greater ammunition to support the rupee as U.S. policy makers debate when to pare back monetary stimulus.

The reserves rose $6.7 billion in October to $283 billion, the steepest monthly increase since 2011, after central bank Governor Raghuram Rajan offered concessional dollar-swaps for lenders to spur inflows. Bank of America Merrill Lynch estimates they will reach $305 billion by the end of March, the month the U.S. Federal Reserve is forecast to pare bond purchases.