Try GOLD - Free
RBI's light touch on rupee volatility spurs hedging by firms
Financial Express Chandigarh
|July 03, 2025
The Reserve Bank of India's increased tolerance for rupee volatility is prompting companies to more actively manage forex risks, enhancing the economy's resilience to global shocks.
THE RESERVE BANK of India's increased tolerance for rupee volatility is prompting companies to more actively manage forex risks, enhancing the economy's resilience to global shocks.
Since Sanjay Malhotra assumed office as the Reserve Bank of India (RBI) governor on December 11, the rupee's daily trading ranges have nearly tripled and a key volatility indicator has doubled, reflecting the central bank's reduced intervention in forex markets.
The RBI is comfortable allowing the rupee to move in line with Asian peers, stepping in only to curb excessive volatility, said four sources familiar with the central bank's thinking and treasury heads at large banks.
The RBI's less interventionist stance has effected a notable pick-up in currency hedging by corporates. In turn, this contributes to a more stable financial system, according to former RBI chief Duvvuri Subbarao.
This story is from the July 03, 2025 edition of Financial Express Chandigarh.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Financial Express Chandigarh
Financial Express Chandigarh
Inclusion of Indian bonds in Bloomberg index delayed
THE DEFERMENT OF India’s inclusion in the Bloomberg Global Aggregate Index triggered a selloff in the bond market on Tuesday, pushing the 10-year benchmark yield higher, ending the day at 6.63%, down 3 basis points (bps).
1 min
January 14, 2026
Financial Express Chandigarh
'Small cars should not trade safety for affordability'
Tata Motors has launched an updated version of the Tata Punch at a starting price of ₹5.59 lakh (ex-showroom).
2 mins
January 14, 2026
Financial Express Chandigarh
Adviser to French prez calls on Modi
PRIME MINISTER NARENDRA Modi on Tuesday met Emmanuel Bonne, the diplomatic adviser to French President Emmanuel Macron, who is expected to visit India soon.
1 min
January 14, 2026
Financial Express Chandigarh
An extraordinary failure of tax governance
It’s time for the government to write off the unrealised tax revenue not under dispute and relieve taxpayers from unwarranted harassment
2 mins
January 14, 2026
Financial Express Chandigarh
AI drives HCLTech growth; impact softer for TCS
THE THIRD-QUARTER EARNINGS of Tata Consultancy Services (TCS) and HCLTech show diverging trends on artificial intelligence (AI) revenues for the IT majors as both scale up the next-gen technology integration into their business models.
1 mins
January 14, 2026
Financial Express Chandigarh
The ‘tech left’ is different this time
THE SIGHT OF the country’s most powerful technology CEOs lined up behind the president at an inauguration they helped pay for was a visual declaration that the Silicon Valley effort to resist Donald Trump was dead.
3 mins
January 14, 2026
Financial Express Chandigarh
Govt steps in to rein in 10-minute delivery
Time-based branding by quick commerce firms set to fade away
1 min
January 14, 2026
Financial Express Chandigarh
Consumer firms pitch for growth continuity
FIRMS HOPE FOR CONTINUED POLICY PUSH FOR CONSUMPTION REVIVAL
2 mins
January 14, 2026
Financial Express Chandigarh
UBS boss Ermotti to exit in 2027
UBS CEO SERGIO Ermotti, who oversaw the Swiss bank's emergency takeover of former rival Credit Suisse, plans to step down in April 2027, the Financial Times reported on Tuesday.
1 min
January 14, 2026
Financial Express Chandigarh
India’s next credit reform
FINANCIAL ASSET TOKENISATION OFFERS AWAY TO CONVERT DATA-DRIVEN INCLUSION INTO CREDIT DEPTH
4 mins
January 14, 2026
Listen
Translate
Change font size