12 Aug 2013

Reserve Bank of India taking steps to support rupee

9:34 am on 12 August 2013

The Reserve Bank of India is introducing new measures to support the rupee.

The Bank is to auction 220 billion rupees ($US3.6 billion) in government bills every Monday. It did not say how many weeks the sale would go on.

The BBC reports the rupee fell to a record low of 61.80 against the US dollar last Tuesday.

The rupee has lost more than 12% of its value since the start of the year.

On 15 July the RBI raised short-term rates to reduce cash in the financial system and took additional steps on 23 July.

However, the BBC reports the rrupee has continued to drop in value.