RBI's short dollar forward position up after 7 months

The Reserve Bank of India’s (RBI's) short dollar forward positions rose by $6 billion in September — the first increase in seven months — indicating the central bank’s readiness to defend the rupee in the forward market amid pressure on the currency, latest data showed.

- ANJALI KUMARI

The net short dollar position stood at $59.4billionatthe endof September, up from $53.4 billion in August. Market participants said the amount likely increased further in Octoberas pressure on the rupee persisted.

The dollar deficit in the RBI’s forward book had peaked at $88.8 billion in February 2025, after which the central bank began cutting it down, reaching $53.4 billion by August.

In October, the RBI was seen steadily supplying dollars to prevent the rupee from slipping beyond 88.8. After recognisingthe scale of long speculative positions in the market, the central bank decided to intervene more aggressively, drivingdown the spot rate. A large part of this intervention is believed to have taken place in the non-deliverable forward (NDF) market. Estimates now suggest the RBI's short forward book may have exceeded $70 billion.