As rupee continues to slide, RBI may be back to spot intervention

India’s central bank may be pivoting to the spot market from forwards in its attempts to shield the rupee from fresh record lows -- in order to minimize the knock-on effects of its intervention strategy.

Reserve Bank of India’s foreign-exchange reserves have fallen by about $30 billion since the end of May to $573 billion, according to its data. While part of the drop is likely down to revaluation due to a stronger greenback, economists say the RBI has also been selling more spot US currency after previous interventions via forwards caused dislocations in that market. 

In the April-May