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As rupee continues to slide, RBI may be back to spot intervention

Reserve Bank of India's foreign-exchange reserves have fallen by about $30 billion since the end of May to $573 billion, according to its data

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In the April-May period, when the RBI ramped up forwards intervention, annualized one-year dollar-rupee forward premium slid.

Subhadip Sircar | Bloomberg

2 min read Last Updated : Jul 25 2022 | 3:37 PM IST

India’s central bank may be pivoting to the spot market from forwards in its attempts to shield the rupee from fresh record lows -- in order to minimize the knock-on effects of its intervention strategy.

Reserve Bank of India’s foreign-exchange reserves have fallen by about $30 billion since the end of May to $573 billion, according to its data. While part of the drop is likely down to revaluation due to a stronger greenback, economists say the RBI has also been selling more spot US currency after previous interventions via forwards caused dislocations in that market.

In the April-May

Topics : Reserve Bank of India Indian rupee RBI Rupee Foreign exchange reserves Emkay Global Financial Services Dollar Rupee vs dollar Shaktikanta Das DBS Bank

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