The Reserve Bank of India will enforce a new limit of $100 million on banks’ net open rupee positions at the end of each trading day, effective April 10. This directive compels lenders to reduce outstanding forward and options bets estimated at $30 billion, aiming to curb speculative pressure and stabilize the currency.

The announcement sparked a 1.4% surge in the rupee as traders rushed to close positions, marking the largest one-day gain since February. Major trading centers in Singapore, London and New York—where institutions including Citigroup, JPMorgan and Standard Chartered dominate non-deliverable forward markets—are bracing for reduced liquidity and wider bid-ask spreads.

Global banks have petitioned for a phased implementation and differentiation between new and existing bets, warning that the abrupt unwind could generate significant losses and liquidity gaps. Proposed stricter reporting on overseas rupee trades may further reshape offshore hedging strategies and prompt operational adjustments ahead of the April deadline.