RBI can sell up to $30bn in intervention: BofA

Bank of America-Merrill Lynch estimates that the RBI can sell up to USD 30 billion to support the rupee, though adding every dollar sold would further raise concerns about India's foreign exchange reserves.

BofA estimates a round of FX volatility typically costs RBI, whether via forwards and/or spot market interventions, about USD 15 billion.

Also read: USD can rise 15% by 2014 end: Morgan Stanley

On the other side of the trade, Bank of America-Merrill estimates that the RBI can afford to buy USD 9 billion in FY14 according to its balance of payments estimates and mobilize the rest via overseas bonds targeted at overseas Indians.

The bank tips RBI to defend 60/dollar for now.

India's foreign exchange reserves rose to USD 290.66 billion as of June 14, which analysts say is enough to cover about seven months of imports.