RBI can spend $30 billion of forex reserves to defend rupee: Deutsche Bank
Live MintDeutsche Bank Thursday said the Reserve Bank of India can spend up to $30 billion from the over $594 billion of forex reserves to defend the domestic currency and even though the country will be left sufficient reserves to take care of import bills for next ten months, reported PTI. The German brokerage said the Indian rupee is trading close to around ₹83.30, its all-time high against the US dollar, and the Reserve Bank is actively intervening in the forex market to curtail volatilities. ".the RBI can easily spend at least USD 30 billion to defend the rupee, and even then, the import cover will remain around 10 months," the brokerage said in its report. However, the Indian customers are unlikely to feel the impact of global crude prices hike, owing to the upcoming state elections, which will be followed up with general elections, the report said.