RBI caps bank FX positions to stabilize rupee amid geopolitical turmoil. The Reserve Bank of India has limited authorized dealers' net rupee open positions to $100 million per business day, effective by April 10, 2026. This regulatory move aims to curb speculation and reduce large bets against the Indian currency as it hits record lows. The rupee has depreciated nearly 4 percent since the West Asia conflict began on February 28, pressured by surging global crude oil prices, foreign portfolio investor outflows, and dollar strength. The currency closed Friday at 94.8125 per dollar, marking its weakest level ever. Market analysts view the position limit as a critical intervention to prevent sharp currency movements during volatile conditions. Rising energy costs compound inflation concerns and threaten growth prospects in the near term.
