India’s central bank is reportedly selling U.S. dollars through state-owned banks while simultaneously engaging in buy-sell dollar/rupee swaps, according to five traders. This activity comes amid portfolio outflows and ongoing uncertainty related to the conflict in Iran, which continue to exert pressure on the rupee.
As a result of the central bank’s interventions involving buy/sell swaps, dollar-rupee forward premiums have decreased, with the 1-year implied yield falling by 9 basis points to 3.06 percent.
Currently, the rupee has depreciated by 0.2 percent, trading at 95.1750 per U.S. dollar. Traders noted that the losses could have been more significant without the central bank’s market interventions.
Published on June 2, 2026.
