Advertisement

HindustanTimes Fri,11 Jul 2014

'Easing rupee open position limits positive move'

None   March 04, 2013
First Published: 10:41 IST(4/3/2013) | Last Updated: 10:46 IST(4/3/2013)

The Reserve Bank of India's decision to remove restrictions on open position limits for rupee currency pairs should improve liquidity in foreign exchange markets, traders said on Monday.

Advertisement

The removal of restrictions by the central bank late on Friday means traders can carry over their positions on rupee pairs from day to day.

The RBI had reduced the net overnight open position limit for the rupee in late 2011, when the currency was slumping, to cut down on speculative trading. That had forced traders to square their trades at the end of each session.

"The move is positive but does not have any directional impact. It will help improve liquidity and reduce intra-day volatility in the market," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.


Advertisement
more from Business

Infosys Q1 net up 21.6%; attrition rate at 19.5%

India's second largest software exporter Infosys has beaten estimates to report a 13.3% rise in net revenue at Rs 12,770 crore and 21.6% rise in net profit at Rs 2,886 crore for the first quarter of 2014-15 on year-on-year basis.

markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved