Archive · 17 Jan 2026
Rupee Falls Sharply Amid NDF Pressures
The Indian rupee dropped sharply to 90.8650 against the US dollar, its biggest one-day fall in nearly two months.
This happened because of nearly $3 billion in non-deliverable forward (NDF) positions maturing.
The Reserve Bank of India (RBI) tried to control the fall by selling dollars in the NDF market.
Traders expect the rupee to stay between 90.50 and 91.20.
Foreign investors have been selling Indian stocks, and the trade deal with the US is still not finalized.
The rupee is close to its all-time low of 91.14.
The dollar index was slightly down, and oil prices were higher.
Indian rupee fell 63 paise to 90.8650 per USD, its biggest one-day drop in nearly two months.
RBI intervened in the NDF market to curb volatility and speculation, avoiding spending foreign exchange reserves.
Traders expect the rupee to trade between 90.50 and 91.20, potentially reaching a new all-time low.
Foreign portfolio investors continued selling Indian equities due to delayed trade deals and deferred bond inclusion in Bloomberg Index.
India's merchandise trade deficit for December was $25.04 billion, with resilient exports to the US despite high tariffs.
- Who
- Reserve Bank of India (RBI), Traders, Foreign Portfolio Investors (FPIs)
- What
- Rupee's sharp decline, RBI's intervention in NDF market, FPIs selling equities
- When
- January 16, 2025
- Where
- India, Interbank foreign exchange market
- Why
- NDF maturities, capital outflows, trade deficit, deferred Indian bonds inclusion in Bloomberg Index
- Rupee Exchange Rate
- 90.8650 per USD
- Biggest One-Day Fall
- 63 paise
- NDF Maturities
- Nearly $3 billion
- RBI Intervention
- Active in NDF market
- Dollar Index
- 99.26
- Brent Crude Price
- $64.49 per barrel
- India's Trade Deficit
- $25.04 billion (December)
- All-Time Low
- 91.14 (December 2024)
