ArbiSmart USD Price & Performance (RBISUSD)

The Reserve Bank of India conducted a $10 billion US dollar-rupee swap to inject long-term liquidity into the banking system. The auction, oversubscribed by over two times, aims to stabilize the rupee and address liquidity shortages. This move follows other measures to ease financial pressures, including bond purchases.12

The Indian rupee continues to weaken as foreign institutional investors persistently withdraw funds for the fifth consecutive month. Combined with expectations of further RBI interest rate cuts, the rupee's outlook remains under strain. However, potential RBI interventions could provide some relief to the currency in the near term.34

India's 10-year bond yields dropped to their lowest in four months, reflecting strong demand for state debt and RBI's liquidity injections. The central bank's dovish stance, including bond purchases and a recent rate cut, has improved market sentiment. Analysts anticipate further easing to support economic growth.5