(Bloomberg) -- India’s central bank got $4.67 billion worth of bids for its first foreign-currency swap auction since the global ‘taper tantrum’ of 2013, which aimed to inject $2 billion.
The Reserve Bank of India got 78 bids of which it accepted 19, it said in a statement Monday. The cutoff was set at a premium of 1.56 rupee.
The central bank last week announced the swap auction to address a shortage of dollars that pushed the rupee to a record low. The Federal Reserve and five developed-market counterparts in coordinated statements on Sunday pledged to ensure that dollars keep flowing around the world after the coronavirus emergency sparked a rush for greenbacks.
READ: RBI to Use India Reserves Amid Rout, as Modi Mulls Spending
The rupee slumped to record low of 74.5250 per dollar on Friday and a sell-off in stocks prompted a trading halt as concerns about the virus threatening global economic growth spurred foreigners to cut their holdings of local assets. They have unloaded $4.5 billion of stocks and bonds in March.
To contact the reporter on this story: Kartik Goyal in Mumbai at kgoyal@bloomberg.net
To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net, Jeanette Rodrigues
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