The Reserve Bank of India reported that its net short dollar position in the rupee forward market increased to $77.25 billion by the end of February 2026, marking the highest level since March 2025. This figure reflects a rise from $68.42 billion recorded at the end of January.
The data indicates that short positions for contracts with maturities of less than one year remained stable at $28 billion. In contrast, positions extending beyond one year experienced a notable increase of approximately $9 billion, reaching $49 billion.
Breaking down the net short position further, $10.9 billion is allocated to one-month contracts, $5.9 billion to one- to three-month tenures, and $11.7 billion is set to mature within the three-month to one-year range. The remaining $49 billion comprises contracts extending beyond one year.
This significant shift in the dollar position highlights the central bank’s ongoing strategy in managing currency stability and addressing market volatility.
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