India cbank says no co-relation between OMOs, rupee

Last Updated: Wed, Jul 04, 2012 06:21 hrs
Police officer stands guard in front of the RBI head office in Mumbai

The Reserve Bank of India's decision to conduct open market operations will be driven by liquidity consideration and cannot be co-related with movements in the rupee, Subir Gokarn, a deputy governor, said on Wednesday.

Intervention by the central bank to keep the rupee weakness in check sucks out rupee liquidity while any bond purchase by the RBI helps in replenishing liquidity.

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