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India's forex reserves fall by $2 billion to $688 billion
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Reserve Bank of India (RBI) on Friday.
The RBI keeps a close watch on the foreign exchange markets and steps in when needed to keep things stable. The central bank's actions such as managing liquidity and selling dollars, are meant to prevent big swings in the exchange rate and to reduce the risk of a sharp drop in the Indian rupee.
RBI's approach does not set a specific target for the rupee's value but aims to maintain stability in the foreign exchange markets.
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