RBI tightens grip on rupee defense through NDF restrictions.

RBI tightens grip on rupee defense through NDF restrictions. The central bank banned banks from offering non-deliverable forward contracts, widening the spread between domestic forwards and overseas NDFs. One-month spreads jumped to 50 paise from 40 paise, while six-month gaps surged to 180 paise from 130 paise. Banks reversed positions, selling dollars locally and buying abroad. The rupee strengthened sharply to 93.10, marking its biggest single-day gain since 2013. Combined with earlier caps on net open positions, RBI has effectively restricted local participation in NDF markets, leaving foreign investors dominant in this space. The moves reflect aggressive central bank intervention to stabilize the currency.