RBI's Rupee Protection Approaches $100 Billion Amidst Currency's Record Decline
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Rupee Defense Nears $100 Billion as Currency Hits Record Low
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Moneycontrol•19-03-2026, 11:28
Rupee Defense Nears $100 Billion as Currency Hits Record Low
•RBI's net-short dollar book, a key tool for defending the rupee, is nearing $100 billion across offshore and onshore markets.
•The measure was $67.8 billion in January and hit a record $88.8 billion in February 2025.
•RBI focused intervention in offshore markets, particularly through non-deliverable forwards (NDFs), to influence exchange rates without immediately depleting reserves.
•The central bank has been selling dollars largely via short-dated contracts and supplementing with buy-sell swaps onshore.
•The growing derivatives book may create recurring demand for dollars as contracts mature, potentially limiting rupee recovery.
