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
The RBI's net dollar purchases more than doubled to $43.26 billion in August, while its outstanding net short position in the forward market climbed to a record $200.06 billion
The rupee weakened to 94.83 against the dollar after eight sessions of gains as rising crude oil prices and dollar buying offset foreign inflows linked to the Jio Platforms IPO
The rupee strengthened to 94.47 per dollar, its strongest level in six weeks, supported by foreign inflows linked to Jio Platforms' IPO and recent RBI measures to curb dollar demand
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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
The rupee gained 0.6% in October, mainly due to a series of steps by the RBI in the last few days to curb speculative bets
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
Broader market indices bucked the trend, with the Nifty Midcap 150 rising 0.1 per cent and the Nifty Smallcap 250 gaining 1.13 per cent
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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.
RBI's net short dollar position in the forward book surged to $200.06 billion at August-end as FCNR(B) flows boosted longer-tenure forward positions
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.
The rupee stayed weak, sliding 11 paise to 95.84 against the US dollar in early trade on Thursday, as geopolitical uncertainties led to a sharp surge in crude oil prices and pushed US bond yields as well as the greenback higher. Forex traders said the inflow of foreign capital failed to support the local currency due to the selling pressure in the domestic equity market and a strengthening American currency. At the interbank foreign exchange market, the rupee opened at 95.84 against the American currency and stayed under pressure, registering a loss of 11 paise from its previous closing level. The rupee ended Wednesday's session 11 paise lower at 95.73 against the US dollar, a day after appreciating 16 paise. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, traded at 100.87, up 0.06 per cent. Brent crude futures, the global oil benchmark, were trading lower by 0.97 per cent but remained elevated at USD 102.08 per barrel compare
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.