Shoring Up The Indian Rupee – RBI June 2026 Measures

The RBI implemented aggressive FX measures in June 2026 to support the Indian Rupee, with estimated inflows of US$40bn. Despite this, long-term structural risks to the INR remain due to high FDI repatriation.

Key Takeaways

• 1.The RBI announced a series of measures to support the Indian Rupee, including subsidizing FX hedging costs for banks and incentivizing ECBs by PSUs.
• 2.Estimated capital inflows of US$40bn are expected from these policies, with potential for higher amounts if India is included in the Bloomberg Global Agg Index.
• 3.While the measures provide near-term support, structural pressure remains due to FDI repatriation and declining net FDI.

Table of Contents

• Key Points
• FX Special Focus
• Shoring up the Indian Rupee
• INR remains under pressure from FDI repatriation and capital outflows
• Disclaimer

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