The Reserve Bank of India is considering all of its available options to stabilize the rupee, including an interest rate hike, more currency swaps and raising dollars from investors overseas, according to people familiar with the matter.
Top officials at the RBI, including Governor Sanjay Malhotra, have held a series of internal meetings to discuss the possible course of actions available after the rupee plunged to a fresh low of almost 97 to a dollar this week, the people said, asking not to be identified because the discussions are private.
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One of the options on the table is raising interest rates, one of the people said. The next scheduled monetary policy decision is on June 5, although the RBI has previously made an out-of-cycle adjustment in May 2022.
Other measures include raising dollars overseas through a deposit scheme for non-resident Indians and selling a sovereign dollar bond, another person said. The latter would be decided by the government, the person said.
