Rupee Extends Recovery as RBI Tightens Forex Rules
The Indian currency is expected to strengthen further after the Reserve Bank of India expanded foreign-exchange hedging requirements and tightened rules for non-deliverable rupee derivatives.
Traders also attributed Monday's gains partly to suspected RBI intervention through dollar sales by state-run banks. The rupee had weakened to near a record low of ₹96.96 per dollar before the recent measures were announced.
Market participants expect the rupee to open around ₹95.50–₹95.60 per dollar on October 13. However, analysts caution that regulatory measures may provide only temporary support if underlying pressures, including elevated oil prices and persistent foreign capital outflows, continue.
The RBI's actions underline its efforts to manage currency volatility and curb excessive dollar demand. The sustainability of the rupee's recovery will depend on broader economic conditions and whether pressure on India's external accounts eases.