Explained: Will RBI’s $5 billion forex swap push the rupee lower?

The RBI’s $5-billion forex swap and Rs 1 lakh crore in bond purchases mark a major liquidity infusion aimed at reinforcing rate cuts and easing pressure on a weak rupee. While the move may trigger short-term softness in the currency, economists say it boosts credit flow and gives the RBI more flexibility to manage volatility amid weak inflows and heightened speculative positions.