Subhadip Sircar

Overseas investors are turning sellers of Indian assets again as surging oil prices and rising global yields threaten to derail a recent revival in demand.

The Reserve Bank of India’s net short dollar book rose past $200 billion for the first time, reflecting surging future repayment obligations from a dollar diaspora program to support the rupee.

The Reserve Bank of India’s net short dollar book rose past US$200 billion for the first time, reflecting surging future repayment obligations from a dollar diaspora programme to support the rupee.

Just months ago, India’s central bank pulled out all the stops to draw in dollars to bolster its foreign-exchange reserves and defend the rupee. The stronger-than-expected deluge of cash is now adding to the case for a more hawkish monetary policy stance.

The Reserve Bank of India's net short dollar book rose past US$200 billion for the first time, reflecting surging future repayment obligations from a dollar diaspora programme to support the rupee.

India’s central bank has put all kinds of support around the rupee, and it’s only just stopping the currency from hitting a record low.

India’s central bank rolled out steps including a special window to supply dollars to state-run oil companies to support the rupee.

The Reserve Bank of India is broadening its defenses to steady the rupee, taking some of its strongest measures since the 2013 taper tantrum. That may give the currency a boost as trading resumes Monday, but the question remains: how far is the central bank willing to go as external pressures mount?

India’s importers are now in the crosshairs of the central bank, as its latest efforts to shore up the rupee expand from financial markets to the economy.

India’s central bank has mounted its strongest defense of the rupee in more than a decade, and said it’s not done yet.