There was no specific level they have sold the dollars at, he added.Īnother banker - a spot trader at a private sector bank - confirmed that the RBI had sold dollars this week, but said he was not sure if the central bank was active again on Friday. "Public sector banks have been selling in NDF for the past three days, including on Friday, before 9 a.m.," one of the bankers said. However, the RBI says it does not, as a policy, target any specific level, but intervenes in the foreign exchange market to smoothen volatility and avoid any extreme moves in the currency. The central bank did not immediately respond to a Reuters request for comment via e-mail. None of the five bankers wanted to be identified as their internal policies do not allow them to speak to the media. Two of the bankers said that the RBI had been selling dollars in the NDF market prior to the opening of the onshore over-the-counter markets. In comparison, the rupee is down 0.3% against the dollar so far this week. The Philippine peso has lost 1.3%, while the Chinese yuan has declined about 1% in the same period. The South Korean won and the Thai baht are both down around 2.4% each this week. The RBI was assumed to have been defending that level back in December, according to traders. The central bank's move to sell dollars in the NDF before the open was likely aimed at ensuring that rupee does not fall below 83, the bankers said. yields and a broad selloff in Asian currencies. The unit, however, has managed to avert a further slide despite a jump in U.S. The rupee closed at 82.83 to the dollar after touching a more than one-month low of 82.8975 on Wednesday. dollar became an important international reserve currency after the First World War, and displaced the pound sterling as the world's primary reserve currency by the Bretton Woods Agreement towards the end of the Second World War.MUMBAI, Feb 17 (Reuters) - The Reserve Bank of India has likely been selling dollars in the non-deliverable forward (NDF) market this week to prevent the rupee from weakening past 83 to a dollar, five bankers told Reuters on Friday. Since 1971, all links to gold have been repealed. From 1934, its equivalence to gold was revised to $35 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. dollar was originally defined under a bimetallic standard of 371.25 grains fine silver or, from 1837, 23.22 grains fine gold, or $20.67 per troy ounce. The monetary policy of the United States is conducted by the Federal Reserve System, which acts as the nation's central bank. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. The Coinage Act of 1792 introduced the U.S. The United States dollar is the official currency of the United States and several other countries.
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