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Government, RBI look at ways to boost foreign funds flow, says FM


      'ways in which we want to strengthen having forign currencies coming into India are very many and RBI and the ministry are fairly engaged in it,' Nirmala Sitharaman said,

 The Indian government and the Reserve Bank of India are looking at ways to boost inflows into the country, the finance minister said on August 2.

      “Ways in which we want to strengthen having foreign currencies coming into India are very many and RBI and the ministry are fairly engaged in it,” Nirmala Sitharaman said in the upper house of parliament in response to a lawmaker's question.
     "There are discussions between the government and the RBI to see how best we can have various different similar such schemes through which we are able to draw foreign remittances directly," the minister said, but added the final call would rest with the central bank.

      Rupee finding its natural course
The minister added that the rupee, that has fallen over the past several weeks to record low before recovering in recent sessions, was not collapsing but finding its natural course.
      "Interventions from the RBI's side are more for containing volatility... not so much to determine the value, increase it or decrease it."
      “The RBI is continuously monitoring the rupee and intervening only if there is volatility. RBI's intervention is not so much to fix the value of the Indian rupee because it is free to find its own course.”
Rupee appreciates
     The rupee appreciated 12 paise to 78.94 against the US Dollar in opening trade on August 2, supported by foreign fund inflows and a weak greenback against key rivals overseas. Besides, softening crude oil prices strengthened domestic forex market sentiment, dealers said.
     
     By 11.40 am, the Indian currency rose to over a one-month high, appreciating more than Rs 1.25/USD in three sessions. The rupee is poised for its biggest single-day gain over the past 16-months.
     Notably, the INR has appreciated 2 percent from the record low of 80.06 which it hit on July 21. The rupee is now down 5.4 percent against the US Dollar over the past 24 hours and down -7.5 percent against USD over the past week.
     In the morning trade, at the interbank foreign exchange, the rupee opened sharply up at 78.96 against the USD and gained further ground to quote at 78.94 in initial deals, registering a rise of 12 paise over the last close. In the previous session, the rupee had closed at 79.06 against the US dollar.
 

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