
Indian companies’ forward-dollar purchases fell 35% in October to $49.5 billion, an eight-month low, after Reserve Bank of India measures raised the cost of holding forward dollar positions. The rupee has since gained about 2%, while hedging costs remain elevated and foreign investors recorded a second consecutive month of outflows from index-eligible bonds.
The tighter rules reduce demand for forward dollars and have supported the rupee, but higher hedging costs may discourage foreign investment and affect currency-linked input costs. The article does not identify a direct supply or demand change in feed commodities.
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