Indian Rupee Set for More Chaos as Banks Unwind $30 Billion in Arbitrage Trades

The biggest shock to India’s currency market in years is set to worsen as banks prepare to unwind billions of dollars more in arbitrage trades.

The Reserve Bank of India’s decision to clamp down on bearish rupee positions late Friday sparked a race by bankers to plead for a rethink as they fielded anxious client calls and gamed out ways to limit losses on trades estimated to be worth at least $30 billion.