The Reserve Bank of India’s (RBI) latest directive to bar banks from non-deliverable derivative (NDD) contracts in the rupee — often misused and manipulated by big currency players — marks a decisive shift toward tighter control and transparency in the foreign exchange market. The move boosted the battered rupee, which had fallen below the 95 level against the dollar, to 93.10, a sharp rally of Rs 1.73 on Thursday (April 2). By eliminating a key avenue for speculative exercise, the central bank is attempting to stabilise currency movements, hit hard by the rising oil prices and capital outflows in the wake of the West Asia conflict, and reinforce the primacy of the onshore market in the country.

Source: Indian Express April 03, 2026 00:07 UTC