Rupee outpaces Asian peers on fresh FX curbs, RBI intervention

What happened: The rupee rose to a peak of 95.0725 per dollar before settling at 95.28, up 0.5% from the previous close, after the Reserve Bank of India introduced fresh foreign exchange curbs and intervention. Key numbers: Rupee peak 95.0725 per dollar, settled at 95.28, up 0.5%. Why it matters: The RBI steps aim to support the rupee by re-routing oil dollar demand and imposing hedging margins. The curbs have rattled banks, widening bid-ask spreads in the forwards market and shifting activity to the non-deliverable forward market.

The rupee rose to a peak of 95.0725 per dollar before settling at 95.28, up 0.5% from the previous close, after the Reserve Bank of India introduced fresh foreign exchange curbs and intervention.

The RBI steps aim to support the rupee by re-routing oil dollar demand and imposing hedging margins. The curbs have rattled banks, widening bid-ask spreads in the forwards market and shifting activity to the non-deliverable forward market.