On Monday the Indian rupee appreciated by almost one percent, trading at 95.81 per US dollar. The move came after the Reserve Bank of India announced a set of regulatory steps designed to address pressures on the currency.
Before the gain, the rupee had closed at 96.73 on the previous Friday. The source summary notes the rupee had previously closed at 96.73 on Friday before this appreciation.
The Reserve Bank of India introduced a Foreign Exchange Risk Reserve (FERR). The source summary states the central bank introduced a Foreign Exchange Risk Reserve (FERR), requiring authorized dealers to maintain a 20% cash reserve for specific derivative contracts.
The source summary states the RBI reduced the threshold for non‑underlying exposure trades to $5 million.
In addition, the central bank prohibited the rebooking of cancelled rupee‑linked foreign exchange derivative contracts. The source summary states that the RBI barred the rebooking of cancelled rupee‑linked foreign exchange derivatives.
🚨🔥 BREAKING NEWS — RBI'S BIG DEFENCE OF THE INDIAN RUPEE! 🇮🇳 ⚡ 5 MAJOR MEASURES TO TACKLE DOLLAR DEMAND & RUPEE VOLATILITY! 1️⃣ PSU OIL COMPANIES — RBI TAKES CHARGE! 🛢️ From 12 October, RBI will directly meet the daily dollar requirements of IOC, HPCL & BPCL through designated banks. 💥 IMPACT: Less routine dollar-buying pressure in the open forex market. 2️⃣ COSTLIER DOLLAR HEDGING! 🏦 Banks undertaking certain INR derivative transactions above $2 million must maintain a 20% cash reserve against the rupee value. 💥 IMPACT: Higher costs could discourage large speculative positions. 3️⃣ MASSIVE CUT IN FX TRADING LIMITS! 📉 The limit for transactions without demonstrating underlying forex exposure reportedly drops from: $100 MILLION ➜ JUST $5 MILLION! Applies to OTC and exchange-traded currency derivatives. 💥 IMPACT: Less room for positions without genuine underlying exposure. 4️⃣ CANCEL & REBOOK? RESTRICTIONS! 🚫 Cancelled rupee FX transactions cannot simply be rebooked against the same exposure. Maturity rollovers remain permitted. 💥 IMPACT: Curbs repeated positioning around the same exposure. 5️⃣ NO DOUBLE HEDGING! 📋 Participants must certify that the same foreign-exchange exposure has not already been hedged elsewhere. 💥 IMPACT: Tighter compliance and fewer duplicate hedges. 🔥 FINAL IMPACT — WHAT COULD HAPPEN TO USD/INR? 📉 Reduced dollar demand could support the rupee. ⚡ Speculative FX activity may decline. 🏦 Banks could face higher hedging costs and tighter liquidity. 💱 USD/INR could face downward pressure — but a sustained rupee recovery is NOT guaranteed. 👑 RBI'S MESSAGE: TIGHTER CONTROL OVER DOLLAR DEMAND AND CURRENCY SPECULATION! #RBI #USDINR #IndianRupee #Forex
The RBI also lowered the threshold for derivative trades that lack an underlying exposure. The source summary states the RBI reduced the threshold for non‑underlying exposure trades to $5 million.
To meet the regular dollar needs of three state‑owned oil firms—Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum—the Reserve Bank of India opened a special window. The source summary notes a special window was established to meet the daily dollar requirements of these three public sector oil marketing companies.
The RBI is cracking down on corporate speculation to defend a plunging rupee. New curbs target major sources of daily dollar demand by making currency hedging 80–150 bps more expensive and opening a direct USD window for oil companies to ease market strain. 📈 #RBI #Rupee #Forex #IndianEconomy
The Reserve Bank of India said, "On the basis of assessment of current market conditions, Reserve Bank of India has decided to open a special window to meet the entire daily dollar requirements of three public sector oil marketing companies (OMCs)..." The source summary includes this quote from the Reserve Bank of India.
According to the chronology, the Reserve Bank of India issued circulars that barred the rebooking of cancelled foreign exchange derivative contracts on October 10, 2026. The chronology lists this date as when the RBI issued circulars.
The rupee’s gain amounted to ninety‑four paise, taking the currency from its earlier level to 95.81 against the US dollar. The numbers section lists 94 paise as the rupee appreciation against the dollar.