RBI signals readiness for further measures to tame foreign exchange speculation

Governor Sanjay Malhotra affirmed that the Reserve Bank of India is prepared to implement any necessary actions to preserve orderly conditions in the foreign exchange market. He clarified that the bank's recent steps are intended to curb speculative activity and should not be interpreted as new capital controls. The RBI has extended restrictions on specific derivative transactions and introduced a special window for oil firms to satisfy their dollar needs, following earlier weekend measures.

These moves come as the rupee gained in offshore markets, with the dollar-rupee non-deliverable forward rate easing to 95.36. The currency also outperformed regional peers after a previous rise of up to 0.8 percent. The central bank continues aggressive market interventions to defend the rupee.