The currency opened at 93.83 against the US Dollar, compared to last Friday’s close of 93.76, a 1.2% drop against the greenback, the most since February 2022. In the offshore market, the rupee had already weakened past levels of 94 against the US Dollar.
Rates in the Non-Deliverable Forwards (NDF) market were pointing to the currency opening in the 93.78 – 93.82 range against the US Dollar this morning.
Crude oil prices continue to remain at elevated levels with Brent managing to hold levels of $110 a barrel, and the US Crude nearing $100 a barrel.
The RBI’s net-short dollar book – a measure of the degree to which it has sold forward its stockpile of forex, neared $100 billion, across offshore and onshore markets, according to a Bloomberg News report, citing people familiar with the matter.
Indian equities have seen selling pressure worth $9 billion so far in 2026 from global funds, already 50% of the $19 billion sold last year. Index-eligible bonds have also seen a sell-off of around $1.4 billion in March, poised for a record monthly record outflow.
In an interaction with CNBC-TV18 last week, Jayesh Mehta of DSP Finance said that the RBI is unlikely to intervene in a big manager and manage the fall in the currency and the depreciation is likely to continue if FII outflows continue from the equity markets.
