RBI net forex buys hit a record $43 billion in August, balances it with swaps
RBI moved higher with August 31 in focus.
· Economic Times Markets
The Reserve Bank of India recorded a net purchase of $43.26 billion in August's foreign exchange market. This was done to manage significant dollar inflows from the FCNR(B) scheme and overseas borrowings. Despite the net purchase, foreign exchange reserves did not increase due to large forex sell/buy swaps. By August 31, measures attracted over $127 billion, aiding the RBI's operations.
Key facts
- Dates in focus
- August 31
The analysis
Against that, the stock is -3.8% on the day at ₹131.00, and has returned -5.4% over three months. It sits 26% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -4.2% over the same period, so Bank of India is running 1.2 points behind its peers.
For Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is BANKINDIA.
- Sector exposure: Banks.
In this story
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