Currency Market

RBI's net short dollar forward position rose from $200.06 billion in August to $239.2 billion in September, driven by FCNR(B) swaps, as forward premiums climbed sharply in October

Currency in circulation rose 13.5% YoY to ₹43.46 trillion in October, while reserve money grew 10.3%, supported by FCNR(B) inflows and RBI liquidity measures

Recent measures have gone beyond merely curbing speculation in the foreign-exchange market policy rules 

India wants to promote trade settlements in rupee to help partner countries facing a shortage of hard currencies so that they continue importing essential goods, Finance Minister Nirmala Sitharaman said on Friday. When countries struggling to access hard currencies often face difficulties in maintaining trade despite their need to import goods, and local currency settlements could help address the problem, she said in an interaction with the Atlantic Council on the sidelines of the IMF-World Bank annual meetings at Bangkok, Thailand. "One of the things that we in India want to do is to settle in rupee, whatever the payment is got to be done by those countries which import goods from us," she said. She said India was working towards facilitating rupee and local currency settlements to ensure that trade continued with countries facing foreign currency constraints. "Rupee and local currency settlements are something which we want to do for the benefit of countries which are starved of

SBI Research has called for curbs on non-essential foreign exchange remittances and closer scrutiny of overseas investments to ease rupee pressure amid global uncertainties

The rupee appreciated 31 paise to 94.86 against the US dollar in early trade on Thursday, supported by the ongoing impact of the Reserve Bank of India's structural forex interventions and liquidity-tightening measures. Market participants attributed the rupee's continued appreciation to central bank intervention and the unwinding of long dollar positions. However, ongoing external macroeconomic pressures are likely to temper further gains, they said. At the interbank foreign exchange market, the rupee opened at 94.95, then gained ground to touch 94.86, registering a gain of 31 paise over its previous close. On Wednesday, the rupee appreciated 19 paise to close at 95.17 against the US dollar. The rupee has now crossed 95.5095.00 range, bringing 94.80 into focus, CR Forex Advisors MD Amit Pabari said. "A sustained break below 94.80 could open the door to another 5075 paise of appreciation. And the reduced direct dollar demand from oil companies could support the momentum," Pabari .

The rupee closed at 95.16 per dollar, up 0.13 per cent, as RBI forex measures and Governor Sanjay Malhotra's comments lent support, while importer demand capped its gains

Poll respondents expect the depreciation bias to persist, with some suggesting that the RBI may need to raise interest rates more aggressively to counter pressure on the rupee

Global headwinds, balance of payment remain key to stability

The rupee fell 0.5 per cent to 96.31 per dollar, while the benchmark 10-year bond yield rose to 7.21 per cent as Brent crossed $100 a barrel ahead of the RBI policy meeting.

On the other hand, the yield on the benchmark 10-year government bond has risen by around 13 basis points during the same period.

The Indian rupee fell past the 96-per-dollar mark during intra-day trade on Tuesday, hitting a two-month low as higher crude prices triggered worries in energy markets.

From RBI intervention in the rupee and questions over electoral-roll revisions to distressed assets, India's growth challenges and political grief, today's opinions examine institutional and economic

RBI's currency intervention must be limited

DEA Secretary Anuradha Thakur said BRICS discussions include interoperability of payment and messaging channels and the use of local currencies for trade and investment

RBI Deputy Governor Poonam Gupta sees a case for rupee appreciation as the current account deficit shrinks and capital flows improve, potentially later this financial year.

The rupee settled at 95.59 per dollar as falling crude prices and likely dollar sales by state-run banks supported the currency; the 10-year bond yield fell 4 bps

Deposit growth hits 15-year high as FCNR(B) mobilisation; incremental credit-deposit ratio softens to 62.6%

The Fed raised interest rates by 25 basis points on ​Wednesday, its first increase since 2023, with officials expecting one more increase ​this year.

The rupee depreciated 25 paise to 95.33 against the US dollar in early trade on Thursday as Brent crude price crossed the USD 100 dollar mark sharply increasing concerns over India's import bill. Forex traders said elevated crude oil prices and persistent dollar demand also weighed on investor sentiments. At the interbank foreign exchange market, the rupee opened at 95.15 against the US dollar, then lost ground to touch 95.33 against the American currency, registering a loss of 25 paise from its previous close. On Wednesday, the rupee slumped 34 paise to close at 95.08 against the American currency. "Rupee's move beyond the psychologically important 95 level also triggered some additional dollar demand and stop-loss activity. However, the decline was contained by RBI intervention," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was