RBI Trims $106.7 Billion Short Dollar Forward Position to Ease Rupee Risks
Updated
Updated · Bloomberg · Jul 10
RBI Trims $106.7 Billion Short Dollar Forward Position to Ease Rupee Risks
1 articles · Updated · Bloomberg · Jul 10
Summary
$106.7 billion in short dollar forwards, a record in May, is now being pared back by the Reserve Bank of India after two years of building the position.
The forward book had swelled as the RBI sold dollars for future delivery to support a persistently weak rupee, leaving it with one of the world's largest bearish dollar bets.
Recent measures expected to draw foreign capital are giving the central bank room to unwind the position while trying to avoid fresh disruption in the currency market.