RBI Liquidity Action & Rupee in Focus This Week!!

RBI Liquidity Action & Rupee in Focus This Week The Reserve Bank of India (RBI) is expected to remain a major market driver this week as it manages banking-system liquidity and supports the rupee through foreign-exchange intervention. The rupee recently strengthened around 0.9%, reaching its strongest level in two months. The RBI has also initiated a 30-day variable-rate reverse repo operation worth ₹7 lakh crore, aimed at absorbing excess liquidity from the banking system. Investors will closely monitor how banks participate in the operation and its impact on short-term interest rates. Meanwhile, India's 10-year government bond yield ended last week around 6.96%, with traders expecting it to remain near the 6.90%-7.00% range. US inflation data and other economic indicators later this week could also influence global rate expectations and Indian markets.