FILE PHOTO: A man walks past an Indian Rupee symbol installation at the Reserve Bank of India (RBI) headquarters in Mumbai, India, August 5, 2026. REUTERS/Francis Mascarenhas//File Photo
| Photo Credit:
FRANCIS MASCARENHAS
The Indian rupee is set to
build on its recovery at Tuesday’s open after the Reserve Bank
of India announced more measures to alleviate pressure on the
currency.
The rupee is expected to open in the 95.50 to 95.60
range, per traders, having rallied 1 per cent to settle at 95.77 to the
dollar on Monday.
The rupee’s biggest single-advance in six months came after
the RBI unveiled a series of measures to curb dollar demand. The
central bank reinforced that with direct market intervention,
selling dollars to support the currency, according to traders.
The RBI has since taken further steps, widening the scope of
a recently introduced cash deposit requirement for
foreign-exchange hedges to cover all such transactions,
including those used to hedge banks’ own assets and liabilities.
The central bank has further tightened rules for banks
offering non-deliverable foreign-exchange derivatives to
clients.
Lenders with units in India’s International Financial
Services Centre and certain primary dealers, which were allowed
to offer non-deliverable rupee derivatives to non-residents for
any purpose, can now offer them only for hedging, the RBI said.
“The RBI is making its intentions clear in trying to push
the rupee higher. Whether such forceful measures will ultimately
deliver the desired outcome is another question,” a senior
treasury official at a bank said.
The RBI can change the near-term dynamics, however, if the
underlying pressures remain in place, these measures may not
prove effective, he said.
Published on October 13, 2026
