The latest RBI’s dollar/rupee buy-sell swap auction also saw robust demand with bids more than double of the amount offered, reflecting both the banking sector's appetite for dollar liquidity and the efficacy of instruments to steer domestic money market conditions.The strong demand notwithstanding, market observers said the RBI may announce its next liquidity booster after the outcome of the April Monetary Policy Committee meeting. This wait-and-watch approach will also coincide with the April 2 deadline on potential US tariff actions under the Trump administration—an event that could reshape capital flows and foreign exchange dynamics.
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