RBI’s net short forward position hits record $106.6 billion amid rupee pressure

The Reserve Bank of India’s intervention to shield the rupee from volatility, fueled by Middle East tensions, has widened its net short forward position to a record $106.6 billion. Despite a recent dip to a historic low, the rupee has shown recovery, buoyed by anticipated foreign capital inflows. These expected inflows are seen as a potential avenue for the RBI to reduce its forward position and bolster foreign exchange reserves.