Rupee Defence Vs Forex Reserves Explained | RBI Intervenes As Rupee Weakens; Forex Rules Tightened
The Indian rupee faces sustained pressure against the US dollar due to elevated crude oil prices, equity outflows by foreign investors, and attractive returns on dollar assets. In response, the Reserve Bank of India has intervened by selling dollars in the market, opening a dedicated dollar facility for three state-run oil firms, and tightening foreign exchange derivative regulations to limit speculation. Finance Minister Nirmala Sitharaman stated that the central bank's actions are aimed at…