India dollar hedging falls to eight month low on RBI curbs

Indian companies' purchases of forward dollars fell 35 percent in October to $49.5 billion, the lowest since February, after Reserve Bank of India measures raised the cost of building positions against the rupee.

Why it matters: The data are the first hard evidence that the RBI's regulatory crackdown, including a reserve requirement on large hedges, is changing corporate behaviour rather than just leaning on intervention, though it also leaves importers less protected if the rupee slides again.

Data as of Clearing house data for October 2026 and Bloomberg compiled NSE and BSE exchange data for the week to November 2, as reported by Bloomberg and The Hindu BusinessLine, which agree on the forward purchase total and the eight month low. The reported bar on banks offering target redemption forwards rests on Bloomberg's reporting from people familiar with the matter; no RBI circular on structured products was obtained in this run. Developing item.

Indian companies bought $49.5 billion of forward dollars in October, down 35 percent from September’s record high and the lowest total since February, according to clearing house data reported by Bloomberg, while their forward dollar sales fell to $32.2 billion, the lowest since May. The drop follows Reserve Bank of India measures last month, including a foreign exchange risk reserve requirement on large hedges, that made forward positions more expensive; activity has thinned further this month, with currency futures volumes averaging about $773 million a day last week against $3.2 billion in October and options trading down about 30 percent week on week. The rupee has recovered about 2.5 percent from the record low it hit on Monday after the central bank intervened in the spot market.

India dollar hedging falls to eight month low on RBI curbs

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