Indian Rupee strengthened to 93.53 against the US dollar after the Reserve Bank of India tightened rules on speculative forex positions and forward contracts. As per the reports, in initial trade in thursday, the rupee strengthened to 93.53 against the US dollar, marking a 1.4% gain from its closing level on Monday.
The central bank has ramped up its efforts to contain arbitrage activity and speculative trades that have been weighing on the currency. These moves come as it navigates concerns around India’s current account, alongside ongoing weakness in capital flows.
The RBI tightened its grip on wednesday further by restricting banks from offering rupee non-deliverable forwards to both resident and non-resident clients. It also barred companies from rebooking forward contracts that had previously been cancelled.
