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Thursday, Aug 29
Rupee rebounds as RBI sells dollars to oil companies
- The Indian rupee has rebounded from the record low it hit yesterday after the Reserve Bank of India said it would sell dollars to the country's major oil companies.
- With oil India's biggest import, the action is aimed at removing $400-500M worth of demand a day for the dollar from the spot market and reducing downward pressure on the rupee.
- Now analysts want to see reform to address India's fiscal and current account deficits, and its slowing growth.
- Indian Prime Minister Manmohan Singh is due to address Parliament tomorrow about the economy.
- The USD-IRN is -1.7% at 67.626, while shares are +1.95% and 10-year bond yields are -16 bps at 8.805%.