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RBI Spends Half of Forex Capital Haul to Defend Rupee
M
Moneycontrol•15-10-2026, 14:16
RBI Spends Half of Forex Capital Haul to Defend Rupee
- •India has deployed about half of the over $140 billion mobilised through special measures earlier this year to support the rupee.
- •The Reserve Bank of India's spot market dollar sales and swap operations are driving the drawdown.
- •Pressure from high oil prices, surging US Treasury yields, and foreign equity outflows have forced increased central bank intervention.
- •Economists estimate the RBI has deployed around $75 billion to $80 billion since June 8.
- •The central bank recently introduced measures like a special window for oil companies to curb open market dollar demand.
Key Questions Answered
Bankers and economists estimate that the Reserve Bank of India has spent about half of the more than $140 billion it mobilized through special measures earlier this year to defend the rupee.
Pressure on the rupee stems from high oil prices, a recent surge in US Treasury yields, and ongoing foreign equity outflows.
The RBI opened a special window allowing oil companies to buy dollars directly from the central bank and imposed cash margin requirements on certain forward dollar purchases to make hedging more expensive.
