Mumbai, March 25 -- The Reserve Bank of India on Monday conducted US dollar-rupee swap worth USD 10 billion for injecting long-term liquidity in the system, with the auction eliciting strong demand. The dollar/rupee buy-sell swap auction to boost rupee liquidity was oversubscribed by a little over two times, with the cutoff rate set at Rs 5.86. The USD/INR Buy/Sell swap auction for a tenor of 3 years was oversubscribed 2.23 times. The swap is part of series of measures that the RBI has taken to ease a liquidity crunch in the banking system. The first leg settlement will take place on March 26 and the second on March 27, the RBI said.

Published by HT Digital Content Services with permission from Capital Market....