In a statement issued late Wednesday, the Reserve Bank of India (RBI) eased norms for foreign portfolio investors (FPI) to invest in the debt market and raised the external commercial borrowing (ECB) limit under the automatic route to 1.5 billion U.S. dollars from 750 million U.S. dollars.
Since April, the Indian rupee has depreciated by around 4.1 percent against the U.S. dollar amid the ongoing geopolitical tensions.
The Indian rupee on Thursday morning was trading at 78.99 against the U.S. dollar after it touched a record low of 79.35 earlier this week.
The Reserve Bank has been closely and continuously monitoring the liquidity conditions in the forex market and has stepped in as needed in all its segments to alleviate dollar tightness with the objective of ensuring orderly market functioning, the statement said.
As on June 24, India's foreign exchange reserves stood at 593.3 billion U.S. dollars, supplemented by a substantial stock of net forward assets, RBI said.
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