RBI Takes Steps To Curb Speculation Against Backdrop Of Record Lows

REGULATORS

As the Indian rupee continued its free fall last week, registering a new low of 39.85 against the US dollar on December 3, the Reserve Bank of India (RBI) banned corporates from rebooking forward contracts cancelled for non-trade transactions, according to central bank officials. Authorized forex dealers have also been banned from offering corporates forward contracts for hedging purposes without documented evidence of exposures, say the RBI officials.

The facility granted to authorized deale