Rupee gains a one month high on Wednesday, July 24, 2013, and has risen up by 63 paise against US dollar closing at 59.13 per US$. This gain in value of rupee has occurred due to the steps taken by Reserve Bank of India (RBI) to curb the exchange rate volatility. Looking at the last two days record of fluctuation in rupee’s value against dollar, we can see that on Monday, July 22, 2013, rupee had opened up strong at 59.49 per USD. On Tuesday, July 23, 2013, it fell again and was closed at 59.59 per USD.
On Wednesday, it initially touched a high of 59.01 but closed at 59.13 which increased by 1.05% in the rupee in past one month.
RBI has announced new measures to compress the liquidity from the banking system. They have limited the access to borrow funds by reducing the facility of liquidity adjustment from the banks to 0.5% which was 1% of the net demand and time liabilities. The banks have also increased the average cash reserve ratio to 99% of the daily requirement which was 70% earlier.
RBI has also tightened import of gold and directed exporters to pull in their dollar receipts as soon as possible. Exporters had an option to receive their payment in 12 months which the government now wants to be 9 months only. Government expects receipt against export order execution should happen within 9 months.
Dollar, earlier this month touched an all time high of 61.22 against the rupee.