Reserve Bank of India Governor Sanjay Malhotra told markets that the recent measures to curb rupee speculation are not permanent. The curbs, introduced amid heightened volatility, aim to restore order without stifling legitimate trading. Investors interpreted the comment as a signal that policy will gradually ease.

Market participants had seen the RBI intervene through limits on forward contracts and tighter position caps. Those steps helped steady the rupee after a sharp depreciation episode, but also raised concerns about liquidity for exporters and importers. By framing the actions as temporary, the central bank seeks to reassure corporate treasurers that credit lines will not be unduly constrained.

Analysts note that a reversible stance could reduce arbitrage pressure while preserving the RBI's flexibility to respond to future shocks. The statement may also temper speculative bets that the central bank would lock in a prolonged restrictive regime, which could have driven up hedging costs for multinational firms.

Overall, the governor’s reassurance underscores a calibrated approach: intervene enough to deter destabilising bets, yet signal an eventual rollback to normal market conditions. This balance aims to protect the rupee’s stability without impairing trade finance flows.