India's rupee faced significant pressure following geopolitical tensions, prompting the Reserve Bank to implement stricter foreign exchange controls in late March.

India's rupee faced significant pressure following geopolitical tensions, prompting the Reserve Bank to implement stricter foreign exchange controls in late March. The central bank capped banks' net open FX positions and restricted non-deliverable forward contracts to curb speculation. According to Axis Bank's treasury chief, these measures have effectively severed the direct link between offshore and onshore markets, shielding the rupee from external pressures. The rupee has since recovered, gaining two percent last week and trading marginally higher at 92.81 per dollar. While offshore traders may continue influencing market sentiment, the RBI's restrictions prevent speculative activity from depleting foreign exchange reserves.