Offshore rupee strengthened after the Reserve Bank of India unveiled one of its
largest FX-support packages since the 2013 taper tantrum. In early Asian
trading, one‑month USD/INR NDF fell as much as 2.7% to 94.17 before trimming to
a 0.7% decline. Announced Saturday, measures include a special dollar window for
state oil firms and reserve requirements on certain FX derivatives. The moves
follow the rupee’s slide toward a near-record low around 97 per dollar and a
policy rate hike by the RBI last Wednesday, when it signaled potential for
further tightening. SOCGEN’s Hong Kong emerging-Asia strategist Galvin Zia said
the package reflects an overdue escalation in FX defence. Market participants
expect the rupee to resume appreciation when onshore trading reopens and see the
RBI defending the c.97/USD level.