RBI's forward-book dollar deficit surges to $68.4 billion in January

RBI's net short dollar position in the forward market climbed to $68.42 billion in January, with a rise in long-tenure contracts offsetting a decline in shorter-term positions

After recording a fall of around $4 billion in December, the Reserve Bank of India’s outstanding net short dollar position in the rupee forward market rose to $68.42 billion by the end of January, latest data showed. It was $62.35 billion by the end of December. 

Short positions in less than one year fell by around $3 billion, while those in longer than one-year tenures rose by around $9 billion. 

Of the $68 billion net short dollar position, $10.1 billion was in one-month contracts, $7.8 billion in one–three month tenures, $10.1 billion is set to mature between three months and a year, and the remaining $40 billion was in more than one-year contracts. 

The net short position in the forward book was $72.5 billion in April, but declined to $53.3 billion in August. Since then, it has increased steadily, except in December.