(Dec 23): Some lenders have asked India’s central bank to step in to curb a sharp rise in hedging costs, according to people familiar with the matter. It also highlights the central bank’s challenge in supporting the currency while minimising the fallout of those measures on the economy. If the central bank were to take the opposite side of these swaps, it may ease pressure by reducing the supply of dollars, the people said. Under central bank rules, banks must limit their dollar exposure. Foreign lenders, in particular, often swap surplus dollars into rupees to meet these requirements, especially towards the year end.

Source: The Edge Markets December 23, 2025 09:33 UTC