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The Economic Times

Economy / The Economic Times

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Why is RBI reducing short dollar forward position?

The Reserve Bank of India is carefully unwinding its large bearish dollar position. This move aims to support the rupee without causing market instability. Recent measures are attracting foreign capital, aiding the central bank's strategy. However, the pace of unwinding is crucial to avoid currency depreciation pressure. The RBI faces a delicate balancing act in managing its forward exposure.

13 Jul 2026 6:30 am