85 breached
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
The Reserve Bank of India (RBI) on Friday said it would inject Rs 40,000 crore into the market by purchasing government securities in November 2018.
The decision comes amid concerns of a liquidity crisis in the economy after the financial services company IL&FS reported defaults in September.
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“Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 400 billion in the month of November 2018,” RBI said in a statement.
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The central bank said the auction dates and the government securities to be purchased in the respective auctions would be communicated in due course.
“The OMO amount is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions,” it said.
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