India tightens liquidity to curb currency volatility

NEW DELHI - The Reserve Bank of India (RBI) has taken additional steps to tighten liquidity and promote currency stability. The latest measures include an additional cap on banks’ access to overnight liquidity from RBI's repo facility (at 7.25%) at 0.5% of individual bank deposits. and tighter implementation of the daily cash reserve ratio on non-reporting days. The  measures come on top of recent efforts to curb rupee volatility. After reaching a weak point of 60.7 per USD in late June, the rupee has strengthened to 59.1 at present.