Rupee Tumbles on Worries RBI’s Bond Plan May Add to Money Glut Bloomberg 3 hrs ago Subhadip Sircar (Bloomberg) -- The Indian rupee tumbled by the most in almost two years, with some analysts saying the central bank’s formal plan to buy bonds will add to a liquidity glut. The rupee dropped 1.6%, the biggest fall since August 2019, to close at 74.5650 per dollar. The central bank said Wednesday it will buy one trillion rupees ($14 billion) of bonds in the secondary market this quarter, in addition to its existing liquidity operations. “A defined primary liquidity infusion via the bond program is de-facto a secondary QE of RBI,” said Madhavi Arora, economist at Emkay Global Financial Services Ltd. “This will imply massive narrow money growth and primary liquidity which is clearly going to put depreciation pressure on INR.”