Branch2 Intelligence
Rupee's defence takes RBI dollar shorts to a record high
Key takeaway
RBI's record $106.6bn net short forward position signals aggressive rupee defence.
- Step 11st-order: RBI sells $106.6bn in forward dollars to defend rupee from new lows.
- Step 22nd-order: Rupee stabilises, reducing FX volatility and import cost uncertainty for UK SMEs trading with India.
- Step 33rd-order: RBI's forward book depletion limits future intervention capacity, raising tail risk of sharper rupee depreciation if capital flows reverse.
Source: IN:Economic Times
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