The Reserve Bank of India announced measures over the weekend aimed at supporting the rupee and managing demand for dollars in the foreign-exchange market. The steps include changes affecting oil companies’ dollar purchases and tighter rules for certain currency-hedging transactions.
The measures helped the rupee strengthen at Monday’s opening, according to market reports. Currency movements remain important for investors because a weaker rupee can raise the cost of crude oil and other imports, while also affecting overseas payments and companies with foreign-currency exposure.
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