RBI's net short-dollar position up $25.4 billion to $103 billion
Business
The Reserve Bank of India (RBI) just hit a record $103 billion in net short-dollar positions, up by $25.4 billion since February.
This big move is the RBI's way of stepping in to manage wild swings in the currency market, especially as global crude prices spike thanks to U.S.-Iran tensions.
Rupee falls to 95.33 against USD
To keep the rupee from sliding even further, the RBI has limited banks' open position limits to $100 million and paused some offshore trading.
Still, the rupee dropped to a new low of 95.33 against the US dollar on Thursday, raising concerns that rising crude prices could widen India's current account gap amid sparse capital inflows.
Basically, these interventions are all about protecting your spending power as global prices shift.