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India RBI's liquidity mop-up via FX swaps offers a channel of support for rupee

By Nimesh VoraThe Reserve Bank of India's use of foreign-exchange swaps to drain surplus rupee liquidity is pushing up forward premiums, indirectly offering support to the rupee.The RBI conducted dollar/rupee sell-buy swaps for a second straight day on Thursday, traders said, with operations seen…

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