Business · Markets · 15 hrs ago
RBI steps up measures to defend the rupee as it nears a record low
The Reserve Bank of India has introduced new measures to support the rupee, which closed on Friday near its record low against the US dollar.
The steps include offering dollars to state-owned oil refiners and requiring banks to set aside funds for some foreign-exchange derivative deals.
The RBI also lowered the limit for certain derivative trades that do not require proof of an underlying asset.
The measures follow a rate increase on Wednesday and come as pressure on the currency grows.
High oil prices and more than $30 billion in overseas investor withdrawals from Indian shares this year have added to that pressure.
The rupee has fallen 7% this year, the weakest performance in Asia, while India’s foreign-exchange reserves have dropped $51 billion in four weeks.
Analysts expect the rupee to strengthen when trading resumes Monday, but say keeping it from a new low may be difficult.
The Reserve Bank of India introduced new measures to defend the rupee as it neared a record low.
The steps include a dollar window for state-owned oil refiners and a reserve requirement for some foreign-exchange derivatives.
The rupee closed Friday at 96.9650 per dollar, just above its record low.
The currency has fallen 7% this year, while pressure on reserves has drained $51 billion in four weeks.
- Who
- The Reserve Bank of India.
- What
- It broadened measures to support the rupee, including opening a dollar window for state-owned oil refiners and imposing a reserve requirement on some foreign-exchange derivatives.
- When
- The latest steps were taken early Saturday. The article was published on October 11, 2026.
- Where
- India.
- Why
- The rupee was again nearing a record low amid external pressures, including high oil prices and overseas fund outflows.
This story does not have two clearly opposing sides.
It is not easy to constantly act as a shield when pressure keeps building up
The steps are some of the strongest we have seen since the taper tantrum.
It is absolutely evident now that 97 per dollar is the RBI’s line in the sand for the rupee
The RBI unveiled its diaspora deposit program days after India removed taxes on bond investments by global funds.
The RBI raised interest rates and signaled it was open to further monetary tightening.
The rupee closed slightly above its record low of 96.9650 per dollar.
The RBI announced a dollar window for state-owned oil refiners and new rules for foreign-exchange derivatives.
Trading was due to resume, with analysts expecting the RBI to defend the 97-per-dollar level.
- Rupee close
- 96.9650 per dollar on Friday
- Rupee decline
- 7% this year, the worst performance in Asia
- Reserve losses
- $51 billion in the past four weeks
- Derivative reserve requirement
- Rupee equivalent of 20% of the notional value of each transaction above $2 million
- Unsubstantiated derivative limit
- Lowered to $5 million from $100 million
- Diaspora deposit program
- Raised $133 billion; reserves reached nearly $800 billion in early September
Sources
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