Rupee Breaches 95 as RBI Moves to Stem Slide
Rupee Breaches 95 as RBI Moves to Stem Slide
Rupee weakens past 95 per dollar amid persistent outflows and a stronger dollar; RBI imposes tighter rules to unwind dollar exposure and stabilize markets.
The Indian rupee slipped past the 95 per dollar mark as persistent foreign outflows and a stronger U.S. dollar kept pressure on the currency amid ongoing West Asia tensions. Traders warned that global risk factors and energy-market jitters were fueling demand for dollars, even as domestic policymakers signaled steps to curb the slide.
The RBI announced a tighter unwind framework for banks, requiring them to trim their net open positions to $100 million by April 10, 2026. The move is designed to force quicker dollar selling and rupee buying, helping to close the gap between where banks are exposed and where the currency trades in the market.
In late trading, the rupee found some support, trading in the mid-94s as investors weighed the impact of the policy shift against ongoing regional risk. Analysts say the measure could provide near-term stability, but it isn’t a cure-all for the broader outflow pressures or the headwinds from a strong dollar linked to the West Asia crisis.
Market participants will continue to monitor foreign outflows, energy prices, and any shifts in geopolitical risk. If tensions ease or global rate expectations shift, the rupee could regain some ground; if not, further depreciation remains a possibility.
