# Indian rupee hits 1-1/2-month high; RBI liquidity stance eyed

> The rupee strengthened to its highest level in 1.5 months on foreign equity inflows, with the RBI having aggressively bought dollars to prevent sharp appreciation. That buying injected large amounts of rupee liquidity, pushing overnight money market rates below the reverse repo rate.

- Date: 2020-12-01 · published 2020-12-01T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/49935-indian-rupee-hits-1-1-2-month-high-rbi-liquidity-stance-eyed
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Stronger rupee momentum lowers USD/INR, reducing the local cost of dollar-priced imports, though RBI liquidity actions may limit the move.

## Read by commodity

- USDINR: bearish ▼

## Sources

- zawya.com: https://www.zawya.com/en/markets/indian-rupee-hits-1-1-2-month-high-rbi-liquidity-stance-eyed-mlspdt0y

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