RBI reportedly intervenes to limit rupee appreciation as it hits 93.92 a dollar
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Exchange rate management and capital inflow dynamics: a key GS3 Economy topic.
Why in news
The Reserve Bank of India (RBI) reportedly intervened in the forex market to limit the rupee's appreciation to 93.92 per dollar amid significant capital inflows.
Background
The rupee appreciated from 94.83 at the end of the last financial year to 93.92. Foreign investors were net buyers of ₹38,971 crore in equities, with ₹38,500 crore specifically in the secondary market.
Facts for Prelims
- FactRupee exchange rate: 93.92 per dollar as of Monday (November 2026).
- FactRBI forward book: Net short dollar position of $239 billion as of September 2026.
- FactForeign equity investment: ₹38,971 crore net purchase in the current fiscal year.
- FactCurrency performance: Won appreciated over 11% and Renminbi gained 3.06% in the current fiscal year.
Prelims practice question
What was the net short dollar position in the RBI forward book as of September 2026?
- (a)$300 billion
- (b)$150 billion
- (c)$239 billion
- (d)$500 billion
Show answer
Answer: (c) $239 billion — The note states the RBI forward book had a net short dollar position of $239 billion as of September 2026.
For Mains
Q. Discuss the role of the Reserve Bank of India in managing exchange rate volatility and the strategic importance of maintaining foreign exchange reserves.
Dimensions to cover in your answer
- Monetary policy trade-off: Balancing export competitiveness against the need to rebuild foreign exchange buffers.
- Capital flow management: Managing the impact of large-scale foreign equity inflows on domestic currency stability.
Keywords: Exchange Rate Management · Forex Reserves · Capital Inflows · Monetary Policy · Currency Appreciation
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.