Notably, the RBI recently undertook norms for tightening of foreign exchange exposure as it capped banks’ forex net open position (NOP) at USD 100 million to stabilise the free fall of the rupee. The central bank, too, has been routinely selling dollars to balance the demand and supply gap of the rupee. However, rising crude prices have been strengthening the dollar and, in return, creating pressure for the rupee. The domestic currency hit a new all-time low on Monday at 96.17 per dollar.
