India’s Central Bank Ramps Up Key Tool to Defend Falling Rupee

India ramped up use of a key tool for defending the rupee to record levels as the currency weakened to an all-time low against the dollar, according to people familiar with the matter.

The Reserve Bank of India’s net-short dollar book, a measure of the degree it has sold forward its stockpile of US currency, is nearing $100 billion across offshore and onshore markets, said the people, who asked not to be identified as the information is private. The measure was $67.8 billion in January, according to the latest official data, and last hit a record $88.8 billion in February 2025.