RTTN:Indian Rupee Recovers From 6-day Low Against U.S. Dollar
The Indian rupee wiped out its previous losses against the U.S. dollar in later deals on Wednesday, as investor sentiment regained after the Reserve Bank of India took back some of its early restrictions on overseas direct investment.
The central bank today issued a clarification on its early circular, saying that funding of overseas direct investments by way of external commercial borrowings for the Indian companies would be 400 per cent of its net worth.
"It has been decided further to retain the limit of 400% of the net worth of the Indian Party for the financial commitments funded by way of eligible External Commercial Borrowing raised by the Indian Party as per the extant ECB guidelines issued by the Reserve Bank of India from time to time," the central bank said.
The RBI had curtailed overseas direct investments to 100 per cent of the net worth from 400 percent for Indian Parties in its circular issued in August.
There are also reports of central bank intervention through selling of dollars to arrest the rupee fall.
The rupee is now trading at 67.045 against the greenback, off a 6-day low of 68.615 hit in early deals. The greenback-rupee pair ended yesterday's trading at 67.73.
