Indian rupee records sharpest single-day gain in over 12 years.

Indian rupee records sharpest single-day gain in over 12 years. The Reserve Bank of India implemented sweeping restrictions on offshore forex derivatives, barring banks from offering rupee non-deliverable forwards to clients and prohibiting contract rebooking. The rupee jumped 1.8% to 93.1738 against the US dollar, marking its biggest gain since September 2013, despite ongoing FII outflows and market weakness. RBI also capped banks' net open rupee positions at $100 million, down from previous limits. These measures disrupt a $149 billion daily market and represent the toughest regulatory action in over a decade. Analysts note the restrictions target popular hedging strategies used to short the rupee. While the moves support near-term currency appreciation, concerns remain about potential medium-term impacts on forex market depth and trading liquidity in India's financial markets.