RBI steps in to support rupee as currency nears record low; tightens forex rules

The Reserve Bank of India has announced new measures aimed at stabilizing the rupee's value in foreign exchange markets. These measures include tightening foreign exchange derivative norms and creating a special window for oil marketing companies. By implementing a cash reserve requirement for large forex derivatives, the central bank seeks to curb speculative dollar demand. The impact of these interventions is expected to affect the rupee's value and forward premiums.