Indian rupee jumps 1.8% to 93.17 after RBI curbs
The Indian rupee just had its best day in over 12 years, jumping 1.8% to 93.17 against the US dollar on Thursday.
This sudden surge happened right after the Reserve Bank of India (RBI) put strict limits on certain types of currency trading to stop people from betting against the rupee, even though foreign investors are still pulling money out.
RBI bars non-deliverable forwards, stops rebookings
To fight the rupee's slide, RBI told banks they can't offer non-deliverable forwards (a popular way for traders to speculate) to anyone, whether they're in India or abroad.
Now, only contracts meant for real hedging are allowed. This move shook up a $149 billion-a-day market and stopped banks from rebooking canceled trades or working with related parties.
It's all part of RBI's bigger plan to keep the rupee steady as global tensions and a strong US dollar keep things unpredictable.