Muted Start for INR, Busy Day for RBI: Here’s What Changed on July 11

Image Source : The Hindu Business Line

India's financial rhythm on 11 July 2025 was one of currency stress and good liquidity, as the Reserve Bank of India (RBI) revealed the latest money market operation statistics. The Indian rupee started weaker against the dollar, with banks holding good cash buffers and utilizing central bank facilities to satisfy short-term requirements.

Currency Movement

Rupee opened at 86.00 compared to the US currency, down 0.23% from the previous close of 85.80
Market sentiment was subdued with some international trade tensions and tariff news
The rupee was set to have minimal upside, its support at 85.50

Liquidity and Banking Operations

Commercial banks under a schedule had ₹9.37 trillion in cash with the RBI
Surplus cash balance of the government with the RBI was zero, reflecting active fiscal deployment
Banks made use of ₹1.80 billion under Marginal Standing Facility (MSF), indicating moderate overnight liquidity needs
RBI extended ₹58.81 billion refinance on July 11, providing sectoral credit flow

Money Market Activity

RBI carried out a 7-day Variable Rate Reverse Repo (VRRR) auction, receiving ₹1.51 trillion at 5.49% cut-off rate
Overnight repo and call money rates remained within the Liquidity Adjustment Facility (LAF) corridor.
There was no government cash surplus available to be sold, with the RBI's liquidity absorption unchanged

The snapshot reflects a stable banking system navigating currency volatility and liquidity management with precision. Market participants continue to monitor RBI’s operations for cues on rate direction and liquidity stance.

Sources: Reuters, RBI Money Market Operations Portal, Business Standard, The Hindu, CNBC TV18