# Indian central bank's record forward dollar position undermines FX reserves comfort | Reuters

> The Reserve Bank of India holds a record short forward dollar position, which weighs on the perceived comfort of its FX reserves. Spot reserves declined while forward dollar sales surged as the RBI leaned against rupee weakness. The pressure was linked to equity outflows and US tariff anxieties.

- Date: 2025-03-03 · published 2025-03-03T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/25882-indian-central-bank-s-record-forward-dollar-position-undermines-fx-reserves
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Heavy forward dollar sales signal that the RBI is defending the rupee and may limit how far it can keep supporting the currency. If reserve cushions shrink, the rupee could face renewed pressure, which would affect dollar-priced Indian exports and imports.

## Read by commodity

- USDINR: neutral

## Sources

- reuters.com: https://www.reuters.com/world/india/indian-central-banks-record-forward-dollar-position-undermines-fx-reserves-2025-03-03/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.