Indian companies’ purchases of forward dollars fell to an eight-month low in October, a sign the Reserve Bank of India’s efforts to curb speculation against the rupee may be having an effect. The buying is used by importers to hedge against losses if the Indian currency weakens.
Commitments to buy US dollars at a later date declined 35% from a record high in September to $49.5 billion, according to clearinghouse data. October’s total was the lowest since February.
Sources: Bloomberg Markets.