Though this sounds like the RBI is getting dollars like crazy, this might have been the unwinding of forward contracts". RBI buys both in the money market (and owns dollars outright, which reflects in the forex reserves) and in the forward market place (exactly where a get will receive dollars at a future date, so it will be an outstanding" get). When that future date comes, the RBI can decide on to purchase the dollars and add to forex reserves, or roll it more than to other forward contracts.

For more info on web site - news, look into our web-page. Barrier/Choice Barrier - An type of option which has a specified level which should not be broken in order for the choice to be paid. This leads to the barrier becoming defended so the alternative barrier is not broken at a particular value level.

Bid - The opposite of the Ask. It is the industry value for traders to sell currencies. The Bid Price is shown on the left side of a quote, e.g. EUR/USD 1.1745 / 50 denotes that one particular EUR can be sold for 1.1745 USD.

European Union (EU) - The economic association of over a dozen European countries which seek to build a unified, barrier-cost-free market for products and services throughout the continent, as well as a widespread currency with a unified authority over that currency.

Operation Twist - A method of lowering interest rates originally applied by the US Federal Reserve in the 1960's. In practise the Fed sells quick term duration securities and buys extended term maturities in order to lower the interest rate on the ten-year note in particular which is the benchmark for other prices such as mortgages.