India's Central Bank Governor Says June Dollar Inflow Measures Brought Nearly $32 Billion

India's central bank governor Sanjay Malhotra said measures introduced in June to attract dollar inflows have brought in nearly $32 billion, with most of the money coming from foreign-currency non-resident deposit schemes. According to Jin10, he also said about $7 billion flowed into India's bond market as foreign portfolio investment after tax changes. Malhotra said the central bank's policy on the rupee has not changed and that it will intervene only when the exchange rate shows excessive volatility; he said it is reasonable to think the rupee is not currently undervalued; he said the current policy repo rate is appropriate given growth and inflation conditions; and he said overall inflation pressure remains relatively mild, although there is a real risk that rising food and fuel prices could spread to the broader inflation environment.