RBI dollar-rupee swap gets almost double bids

Mumbai: The Reserve Bank of India’s 3-year dollar-rupee buy-sell swap saw strong demand, with participants bidding nearly double the notified amount.

The $5 billion swap attracted bids worth $9.8 billion, with its cutoff premium at 910 paise, an increase of 182 paise from the last time the central bank conducted a 3-year swap.

The settlement of the initial leg of the FX swap will take place on Friday, through which the RBI will inject rupee liquidity into the banking system. The liquidity stood at a low surplus of Rs 67,285 crores as of May 25