India Acts to Curb Forex Speculation as Rupee Plumbs New Lows

India’s central bank stepped up its defense of the battered rupee, rolling out a measure to curb speculation after it slid to a new low amid concerns of a widening trade gap driven by the US-Iran war.

The Reserve Bank of India said late Friday that lenders acting as authorized dealers in the rupee must ensure their open positions in the onshore currency market do not exceed $100 million at the end of each trading day. Banks must comply by April 10, the regulator said, adding that such limits may be set depending on market conditions.