The RBI dollar-rupee swap fetches almost double the bid

MUMBAI: The Reserve Bank of India’s 3-year dollar-rupee swap saw strong demand, with participants bidding nearly twice the suggested amount.

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

The initial tranche of FX swaps will settle on Friday, through which the RBI will inject rupee liquidity into the banking system. On May 25, liquidity stood at Rs. 67,285 crore was a low surplus.