The Reserve Bank of India pushed its principal rupee‑defence instrument past a fresh milestone this month, lifting the net‑short dollar book to roughly $110 billion‑$115 billion across onshore and offshore markets. The metric tracks how much of the central bank’s foreign‑exchange reserves it has sold forward in dollars, a key lever for stabilising the rupee amid volatile capital flows.

In April, the RBI’s short position sat at $95.3 billion, climbing from a record $103.1 billion in March. The surge reflects heightened intervention as the rupee slipped toward its 2024 low, prompting traders to hedge exposure. Analysts say the expanded book signals the central bank’s willingness to absorb dollar pressure rather than rely on interest‑rate hikes alone.

With the net‑short now topping $110 billion, the RBI has built a sizeable buffer that can be drawn down to counter sudden outflows. Market participants will watch the book’s trajectory for clues on future policy moves, but the current scale already cushions the rupee against near‑term turbulence.

The RBI’s aggressive stance arrives as foreign investors recalibrate portfolios after the United States’ latest rate‑policy signals and domestic political uncertainty. By maintaining a deep forward market, the central bank reduces the need for abrupt monetary tightening, preserving credit growth. The expanded short position thus serves both currency stability and broader economic support.