\'Closely monitoring\' situation, will take measures for market stability: RBI

MUMBAI: The Reserve Bank of India (RBI) on Friday said it is closely monitoring the current global situation and assured that it will take all steps to keep markets adequately liquid and stable.

The statement comes at a day when trading on the Indian stock exchanges hit a “circuit breaker” first time since 2008 as soon as markets opened on Friday.

“The RBI is closely and continuously monitoring the rapidly evolving global situation and will take all necessary measures to ensure that money, debt and forex markets remain adequately liquid and stable, and continue to function normally,” the RBI said in a statement.

Both Sensex and Nifty plunged over 10 per cent in the opening session, hitting their lower circuit levels, as new coronavirus-led recession fears triggered panic selling in the market.

In the currency markets, the Indian rupee recovered sharply to trade 46 paise higher at 73.82 against the US dollar. At open, the rupee fell to a record low of 74.5075 against the US dollar.

The RBI also announced to infuse an additional short-term liquidity of Rs 25,000 crore in to the system to counterbalance the domestic liquidity effects on account of dollar sell-buy swap on Friday.

The RBI also said the minimum bid size for the swap auction will be USD 10 million and in multiples of USD 1 million thereafter.