💨 Abstract

The Reserve Bank of India (RBI) has built a record short U.S. dollar forward position over months, totaling $77.5 billion in January 2025, to support the rupee amid equity outflows and U.S. trade policy concerns. This position has diminished the comfort offered by India's large forex reserves, as the RBI's forward dollar sales position increased by over $60 billion from October to January.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖