RBI's Secret $100M/Min Sales Defend Rupee Amid Record Lows

• India's central bank (RBI) uses secret, unpredictable interventions, instructing dedicated traders to sell dollars to defend the rupee against all-time lows.
• RBI Governor Sanjay Malhotra adopts a "leaning against the wind" approach to manage rupee volatility and speculation, aiming to balance intervention without draining liquidity or reserves.
• The rupee has tumbled 4.9% against the dollar in 2025, driven by a widening trade deficit, US tariffs, foreign outflows, and the absence of a US trade deal.
• RBI's intervention process involves daily high-level meetings and instructions to state-run bank dealers in sealed rooms, with strategies designed for unpredictability to deter speculation.
• India's past rupee crises (1991, 2013) led to the accumulation of $686 billion in foreign reserves, providing a strong buffer for current currency interventions.

Why It Matters: RBI's currency interventions are vital for India's economic stability amid rupee weakness.