𝗥𝘂𝗽𝗲𝗲 𝗚𝗮𝗶𝗻𝘀 𝟱𝟬 𝗣𝗮𝗶𝘀𝗲 𝗔𝗳𝘁𝗲𝗿 𝗥𝗕𝗜 𝗔𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝘀 𝗡𝗲𝘄 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗠𝗲𝗮

𝗥𝘂𝗽𝗲𝗲 𝗚𝗮𝗶𝗻𝘀 𝟱𝟬 𝗣𝗮𝗶𝘀𝗲 𝗔𝗳𝘁𝗲𝗿 𝗥𝗕𝗜 𝗔𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝘀 𝗡𝗲𝘄 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀

The Indian rupee gained 50 paise against the US dollar on Friday. It strengthened to 95.24. The Reserve Bank of India left interest rates unchanged for a second meeting in a row. RBI Governor Sanjay Malhotra announced steps to attract foreign capital. The moves come as the US-Iran conflict pressures India's external sector.

The rupee opened at 95.72 in the currency market. It later hit a high of 95.24 during the day.

Malhotra outlined several initiatives:

• The RBI added all new 15-year, 30-year, and 40-year government bonds to the Fully Accessible Route.
• The RBI removed restrictions on short-term investments for foreign portfolio investors using the General Route. It also removed concentration limits and individual security exposure limits.
• The RBI raised investment limits for Non-Resident Indians and Overseas Citizens of India in listed stocks. These instruments do not need SEBI registration.
• The RBI will offer a concessional foreign exchange swap facility to public sector firms until September 30. This aims to encourage external commercial borrowings.
• The RBI will let authorized dealer banks fully cover hedging costs for fresh FCNR(B) deposits. These deposits must have maturities of three to five years. The facility runs until September 30.
• The RBI restored the export proceeds realization period to nine months.

Malhotra said the changes will help increase foreign participation in government borrowing. He noted the government's capital gains tax exemptions on government securities will help too.

Malhotra stated the RBI does not target any specific rupee level or band. The central bank allows market forces to set the exchange rate. He said the RBI will curb excessive volatility and prevent disorderly movements. He added India's foreign exchange reserves provide a strong buffer against external shocks.