India’s central bank on Friday directed banks to limit their net open positions on the rupee in the foreign exchange market to $100 million at the end of each business day, with authorized dealers required to comply by April 10.Existing rules allow the boards of directors of authorized dealers to set net open position limits, provided they do not exceed 25% of the firm’s total capital. However, the Reserve Bank of India retains the authority to impose hard caps to manage exchange rate volatility.
The order comes when the rupee has hit a string of record lows as worries over the spillovers from the Iran war sent the currency down 4% against the dollar.
Foreign investors have sold Indian stocks and bonds at a record monthly pace, adding to the strain on the rupee.It touched a record low of 94.84 on Friday, down nearly 1%, as global markets contended with considerable volatility due to worries about a sustained disruption of global energy supplies due to the Middle East conflict.First Published: Mar 27, 2026 11:47 PM IST
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