Critical Measures from the Central Bank for the Indian Rupee

India's Central Bank (RBI) New Strategy

The Reserve Bank of India (RBI) recorded an increase in its short dollar position in offshore markets for the first time in 7 months in September. The central bank's short-term position reached 59.4 billion dollars, with an increase of 6 billion dollars. This figure reflects the amount of dollars that the RBI has agreed to sell at a previously determined price.

Domestic and International Dollar Sales

Investors note that sales of dollars are being carried out not only in international but also in domestic markets to support the Indian Rupee. In September, it was observed that the dollar hit a record high of 88.8 rupees due to a 50% customs duty imposed by the US on India. Thus, the rupee has been recorded as Asia's worst-performing currency.

Controlled Depreciation from RBI

Dhiraj Nim, a currency strategist at the Australia and New Zealand Banking Group, emphasized that this move by the RBI aims to prevent sudden fluctuations in the rupee and to avoid the formation of speculative positions. Nim drew attention to expectations that the central bank will allow for a controlled and gradual depreciation of the rupee if needed.

RBI's Position and Financial Data

According to central bank data, the RBI's net open position with maturities of up to one month increased to 16.5 billion dollars in September, showing a significant rise from the previous month's 5.9 billion dollars level.