The Reserve Bank of India has performed its presence on the offshore-not-resistant forward (NDF) market to support the rupid that came under pressure by changing the dynamics of the question, bankers said Monday.
Exportors have stopped the sale of dollars, while collecting importers in response to American rates, which contributes to the weakness of the rupid, they added.
Reuters It reported last month that the RBI had resumed the intervention on the NDF market after a period of reduced activity.
Recent interventions have been visible during local trading hours, which suggests that a more targeted approach to the management of currency vatility, said a senior treasury officer at a bank in the private sector.
The RBI did not immediately respond to an e -mail to ask for comments. The bankers spoke on condition of anonymity because they are not authorized to speak with the media.
The officer said that the RBI sold dollars on the NDF market last week when the rupee crossed the 88.40 per dollar to get a record low.
A currency trader at a Mumbai-based bank with an active NDF agency in Singapore said that they saw the bank for international settlements appear on the offer side of dollars/rupees transactions in the NDF-market-a common proxy for activities of the central bank.
The rupid hit a low point of 88,4550 per dollar last week, which reflects stress through unequal flows. Hedging of importer, stimulated by rates, contrasts with the restraint of the exporter to sell dollars, which contributes to offshore pressure.
Bankers said that the RBI was probably also active on the Onshore spot market.
The senior treasury officer noted that the current approach of the RBI differs from De Stijl under former Governor Shaktikanta Das, which suggests that the central bank “is not married to a certain level” and is aimed at maintaining orderly market conditions without too many reserves.
Volatility measures indicate that the strategy may work. Implicable volatility of one month has fallen to a lowest layer of six months, pointing to well -anchored expectations.
Published on September 15, 2025
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