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2025-11-03 14:22:10
[RBI Increases Dollar Short Positions to Curb Rupee Depreciation] The Reserve Bank of India (RBI) increased its short dollar positions in the offshore derivatives market for the first time in seven months in September, reflecting its efforts to curb the rupee's depreciation. According to RBI data, its net short forward positions (the amount of dollars it agrees to sell at a predetermined price in the future) increased by $6 billion to $59.4 billion. Traders said on Monday that the RBI's intervention was not limited to forward transactions but also involved selling dollars in the onshore market to support the rupee. The rupee hit a record low of 88.8050 against the dollar in September. "The increase in forward positions indicates that the RBI does not want speculative positions to form without changes in monetary fundamentals," said Diraj Niem, a currency strategist at ANZ Bank in Mumbai, who expects the RBI to allow for "controlled, gradual depreciation" in the future.
