Bhaskar Dutta

Some big lenders in India have asked the central bank to inject liquidity using foreign-exchange swaps as short-term currency financing costs surged to a four-year high, according to people familiar with the matter.

(Bloomberg) -- A former Reserve Bank of India official said the authority should ease its tight grip on the rupee, a view that comes amid uncertainty over whether the new Governor will maintain his predecessor's policy of limiting currency swings.

India’s central bank may take measures to inject cash in the banking system before it begins to cut interest rates this quarter, according to some of nation’s biggest fund managers.

India’s central bank is using dollar-rupee swaps to ease a liquidity squeeze in the country’s financial system, according to people familiar with the matter.

The Reserve Bank of India used dollar-rupee swaps to inject $3 billion worth of rupee liquidity to ease a financial squeeze. This move was made to counteract a tightening of rupee liquidity due to tax settlements and stock purchases. However, this action adds pressure to the rupee which has been losing value against the dollar.

India’s central bank may take stronger measures, including cutting cash reserve requirement for lenders, to ease tight liquidity conditions, according to people familiar with the developments.

Some of India’s largest lenders are planning to request concessions from the new head of the nation’s central bank regarding proposed liquidity regulations, arguing the rules could hamper efforts to boost lending, according to people familiar with the developments.

Indian insurers have held talks with the regulator to propose the introduction of equity options as a hedging tool to boost their risk-management strategies, according to people involved in the discussions.

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Subhadip Sircar and Bhaskar Dutta 3 min read (Bloomberg) -- After two years of calm, the rupee's sudden slide is starting to strain