With the rupee depreciating about 4 per cent since the West Asia war began on February 28, 2026, the Reserve Bank of India has asked authorised dealers to ensure that their net open position – Indian Rupee (NOP-INR) – in the onshore deliverable market shall be maintained within $100 million at the end of each business day.
The move is probably aimed at reducing large bets against the Indian currency and preventing sharp movements amid rising global crude oil prices, continuous FPI-related outflows from the equity markets and a strengthening dollar, say market experts.
Authorised dealers have to ensure compliance with the order at the earliest but no later than April 10, 2026, according to the central bank.
Under the Master Direction on Risk Management and Inter-Bank Dealings, the Reserve Bank may prescribe limits for open positions involving rupee (NOP-INR) for exchange rate management, depending on market conditions.
Rupee at record low
The raging war in West Asia continues to have a deleterious effect on the rupee, which closed at a new all time low on Friday (March 27, 2026).
The rupee closed at a new low of 94.8125 per US Dollar, down about 84 paise against previous close of 93.9775, amid rising global energy prices, FPI-related outflows from domestic equity markets and a strengthening dollar.
YES Securities, in a report, noted that the Indian rupee fell to a record low, past 94 per dollar this week, pressured by energy supply concerns and foreign outflows.
“The rupee has dropped about 4 per cent since the war began, putting it on track for its first fiscal-year decline in over a decade. Rising energy costs are adding to inflation and growth concerns, keeping the near-term outlook weak,” per the report.
Published on March 28, 2026