Rupee Slide Puts Spotlight on Limits to India’s Currency Defense
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The Indian rupee’s rapid slide to successive record lows in recent weeks has analysts debating why the central bank has refrained from intervening more forcefully to support the currency.A key reason is the Reserve Bank of India’s $64 billion short-dollar positionBloomberg Terminal — a pledge to supply large amounts of dollars in the future through derivatives contracts with lenders. This exposure constrains how freely the central bank can deploy additional dollars in the spot market to support the rupee. Sentiment has also been dented by foreign outflows out of local stocks and bonds amid delays in finalizing a trade deal with Washington.