MUMBAI, Jan 22 (Reuters) - The Indian central bank has
allowed exporters to access the foreign exchange market without
having to first exhaust funds in their foreign currency
accounts, reversing a previous restriction imposed to prevent a
sharp fall in the rupee.
The move was triggered by operational difficulties faced by
these account holders, the Reserve Bank of India said on
In May 2012, the RBI mandated exporters to sell half of
their foreign currency earnings and buy rupees instead of
holding them in their exchange earner's foreign currency account
The rupee had been hitting record lows due to global risk
aversion and foreign investors' concerns over India's sluggish
growth and lack of reforms.
In late June 2012 the currency touched a record low of 57.32
to the dollar.
"This move shows that the RBI is probably comfortable with
the rupee's level and may further ease restrictions," said a
foreign exchange trading head at a private bank.
The rupee hit a near three-month high of 53.3750 per dollar
on Tuesday, before closing at 53.81/82.
(Reporting by Neha Dasgupta)