# Prospects of a strong rupee face headwinds from RBI desire to hoard dollars

> The RBI Governor said emerging markets need to build reserves as buffers against external shocks, even at the risk of being added to the US currency-manipulation watchlist. India's central bank has sustained forex purchases, which analysts say will keep the rupee weak in 2021. The article describes a departure from the RBI's long-standing policy of intervening only to contain volatility.

- Date: 2021-01-21 · published 2021-01-21T12:00:00.000Z
- Category: macro · region India · magnitude medium
- Page: https://feedsoft.ai/events/49442-prospects-of-a-strong-rupee-face-headwinds-from-rbi-desire-to-hoard-dollars
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Persistent RBI dollar buying keeps the rupee weaker, which raises India's costs for dollar-priced feed imports.

## Read by commodity

- USDINR: bullish ▲

## Sources

- theprint.in: https://theprint.in/economy/prospects-of-a-strong-rupee-face-headwinds-from-rbi-desire-to-hoard-dollars/589350/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.