Indian Rupee: RBI defends manageable Dollar shorts – BNY
BNY Mellon’s Geoff Yu highlights comments from RBI Governor Sanjay Malhotra that the central bank’s net-short forward-Dollar position is still very manageable despite large bearish bets to support the Rupee.
In a statement, Governor Sanjay Malhotra of the Reserve Bank of India (RBI) confirmed that the central bank's net-short forward-Dollar position remains "very manageable," despite the large bearish bets made to support the Rupee over the past two years. Malhotra emphasized that the exchange rate is market-determined and that RBI interventions aim to curb excessive volatility and speculative activity.
He defended the early closure of the FCNR(B) swap window as a data-driven decision, not a policy reversal. Malhotra also noted that foreign currency inflows have been stronger than anticipated and expects at least $80 billion from various measures to attract foreign currency. However, he pointed out that each additional swapped dollar provides diminishing benefits, as sterilization costs continue to rise.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
