The Reserve Bank of India (RBI) relaxed rules for foreign investors in exchange traded currency derivatives by increasing the trading limits allowed without an underlying exposure for the dollar/rupee pair to $15 million per exchange from $10 million earlier.
The RBI also said that foreign portfolio investors can take long or short positions of up to $5 million in euro/rupee, pound/rupee, Japanese yen/rupee pairs in exchange traded derivatives.
The country’s central bank also will now permit importers to hedge up to 100% of their eligible limit in the exchange traded market compared with 50%.