Critical Measures by the Central Bank for the Indian Rupee

India's Central Bank (RBI) New Strategy

India's Central Bank (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 Foreign Dollar Sales

Investors indicate that dollar sales are being made both in foreign and domestic markets to support the Indian Rupee. In September, it was noted that the dollar reached a record high of 88.8 rupees due to a 50% customs duty imposed by the US on India. As a result, the rupee was recorded as the worst-performing currency in Asia.

Controlled Depreciation by RBI

According to Dhiraj Nim, a currency strategist at the Australia and New Zealand Banking Group, this move by the RBI is aimed at preventing sudden fluctuations in the rupee and avoiding the formation of speculative positions. Nim highlighted expectations that the central bank would carry out the rupee's depreciation in a controlled and gradual manner if needed.

RBI's Position and Financial Data

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