The Reserve Bank of India (RBI) sold a net $6.1 billion in May, purchasing $22.2 billion and selling $28.3 billion, as the rupee fell to a record 96.96 per dollar due to surging oil prices. The central bank's firm intervention and policy measures, including tax cuts on foreign debt, helped shore up the currency. RBI's net outstanding forward dollar sales reached a record $106.6 billion, while gold holdings remained stable at 880.52 metric tonnes. This aggressive intervention by a regional central bank against oil-driven currency weakness could signal similar pressures for the Pakistani Rupee and potentially impact local gold demand if global oil prices remain elevated.
بحوالہ / Source: www.brecorder.com