India's Central Bank May Boost Forex Reserves with Dollar Purchases

India's central bank is expected to begin purchasing U.S. dollars to enhance its foreign-exchange reserves when the rupee appreciates to approximately 88-89 per dollar. Bloomberg posted on X, citing Citi's local markets head, who indicated this potential move. The strategy aims to strengthen India's financial position by increasing its reserve holdings. This development comes as the rupee shows signs of gaining strength, prompting the central bank to consider bolstering its reserves through strategic dollar acquisitions.