The Indian rupee erased its early gains against the U.S. dollar in afternoon trading on Monday despite the Reserve Bank of India announced a slew of measures with immediate effect to curb the slide in the rupee.
The central bank decided to raise the limit of external commercial borrowing or ECB for Indian companies in manufacturing and infrastructure sector for repayment of outstanding Rupee loans. "The overall ceiling for such ECBs would be $10 billion," the central bank said in a statement.
The maximum investment limit for Foreign Institutional Investors in government securities was lifted by $5 billion to $20 billion.
Further, Qualified Foreign Investors can now invest in those mutual fund schemes that hold at least 25 percent of their assets in infrastructure sector under the current $3 billion sub-limit for investment in mutual funds related to infrastructure.
At present, the rupee is worth 56.88 per dollar, compared to an early high of 56.38.
by RTT Staff Writer
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