Economic TimesLean R·
RBI's forex curbs lift rupee as banks reassess hedging costs
The Indian rupee has appreciated in value against the dollar following banks' compliance with recent currency derivative guidelines. The Reserve Bank of India has required banks to hold a 20% reserve for foreign exchange risks. This policy seeks to mitigate speculative trading practices and provide currency stability. As a result, banks are revisiting their dollar hedging costs, striving to protect the rupee from declining further.
Read at Economic Times →
