RBI drains out Rs 11,000 crore through bonds, but rupee still on edge | business | Hindustan Times
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RBI drains out Rs 11,000 crore through bonds, but rupee still on edge

The Reserve Bank of India (RBI) on Monday sold Rs 11,000 crore of 35-day bonds called cash management bills (CMBs) at a yield of 11.71%. The measures however failed to shore up the rupee, which fell by 39 paise on Monday to 61.27 against the dollar. HT reports.

business Updated: Aug 12, 2013 23:05 IST
HT Correspondent

Aiming to suck cash out of the banking system to stop the rupee from weakening further, the Reserve Bank of India (RBI) on Monday sold Rs 11,000 crore of 35-day bonds called cash management bills (CMBs) at a yield of 11.71%.

The central bank plans to sell an additional Rs 11,000 crore worth of bonds in 34-day bills on Tuesday.

The measures however failed to shore up the rupee, which fell by 39 paise on Monday to 61.27 against the dollar, just 3 paise off its record closing low, on heavy demand for the US currency from importers.

RBI had on Thursday announced it would sell CMBs every Monday, the third set of measures to defend the currency by draining cash since initial steps unveiled on July 15.

It got 194 bids for Rs 27,190 crore at the CMB sale but accepted only 114 bids for Rs 11,000 crore.

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