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Government steps fail to cheer forex market

The Reserve Bank of India (RBI) in consultation with the government announced a host of measures to encourage flow of foreign debt, but failed to cheer forex markets where the rupee slipped to end the day below 57 levels, close to its historic lows. The measures include allowing companies with forex earnings to raise foreign borrowings of up to $10 billion, increasing the limit for FII investment in government debt from $15 billion to $20 billion, allowing qualified institutional investors to park funds in government securities and relaxing norms for foreign debt investment in infrastructure.

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