Indian companies trade $7.54 billion NDFs after RBI rule change
Business
Indian companies made big moves in the non-deliverable forwards (NDF) market on March 30, trading a massive $7.54 billion in a single day.
This rush came after the Reserve Bank of India (RBI) changed its rules to limit how much foreign currency banks could hold, opening up new opportunities for companies to profit from price differences between markets.
RBI bans new NDFs, rupee rebounds
Even with these changes, the rupee only got temporary relief. It briefly strengthened but then dropped to a record low of over 95 per US dollar as demand for dollars soared.
The RBI quickly responded by banning local banks from issuing new NDF contracts and stopping companies from rebooking canceled deals, which helped bring the rupee back up to around 93 per US dollar.