The Indian Rupee has strengthened against the US Dollar, with the USD/INR pair approaching levels below the 95 handle, following intensified foreign exchange measures by the Reserve Bank of India (RBI).
According to FX Street, Societe Generale's strategists highlight that the RBI has expanded its forex curbs to include GIFT City and broadened the application of risk reserves in its efforts to stabilize the currency.
This tightening of forex controls reflects India's ongoing policy response to external pressures, a development that Japanese investors should monitor closely given the interconnectedness of Asian currency markets and the impact on regional trade flows.