The Reserve Bank of India (RBI) has actively intervened in the foreign exchange market in recent months to manage sharp rupee volatility and prevent record lows, with operations observed in both the spot and offshore non-deliverable forward (NDF) markets. Anshul Chandak, Head of Treasury at RBL Bank, noted that the RBI’s interventions aim to smooth depreciation rather than control the currency. Most operations are carried out through large state-owned banks, with occasional involvement of private banks.
According to Anil Kumar Bhansali of Finrex Treasury Advisors, interventions have been significant around key levels, for instance, taking the rupee from 87.95 to 83.75 and from 88.80 to 87.62. Such measures aim to curb speculative pressures and stabilize the currency amid global and domestic challenges.
The rupee has faced pressure due to US tariffs, the Russia–Ukraine war, and geopolitical tensions in the Middle East, along with domestic foreign investor outflows, depreciating about 3.65% this year.
RBI has increasingly used NDF markets to manage volatility without reducing forex reserves, while data shows net forward sales rising to $53.355 billion in August, and $43.466 billion spent between December 2024 and August 2025 to defend the rupee.
