An $84 billion short book is putting pressure on India’s rupee

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The Indian rupee is underperforming in emerging Asia due to the RBI's focus on preventing foreign-exchange reserve depletion. With substantial dollar repayments due, the central bank may need to purchase dollars, potentially weakening the rupee to 86.50-87.50 per dollar. While the RBI aims for a market-determined trading regime, it's expected to replenish FX buffers, impacting the rupee's performance.