Rupee hits record low as naira dips to N1,362/$ amid dollar strength

India’s rupee fell to a record low against the US dollar, prompting the Reserve Bank of India (RBI) to intervene with nearly $100 billion in forward dollar positions.

The move comes amid renewed pressure on emerging markets from a resurgent dollar, even as India’s foreign exchange reserves remain near historic highs at $717 billion.

The RBI has expanded its net-short dollar position from $67.8 billion in January to nearly $100 billion, approaching the $88.8 billion peak seen in February 2025.

The central bank relies on offshore non-deliverable forwards (NDFs) and onshore buy-sell swaps—some exceeding one-year tenors—to stabilise the rupee efficiently without depleting reserves.

Similarly, Nigeria’s naira weakened to N1,362/$ on Wednesday, following a brief appreciation to N1,345/$ on Tuesday at the official foreign exchange market.

Gross external reserves fell slightly to $49.86 billion in March from $50.45 billion in February, reflecting ongoing pressures from global market volatility and declining oil revenues.

The Central Bank of Nigeria (CBN) noted that the country’s improving external reserve position—up to $34.8 billion at the end of 2025—could help cushion the naira against sustained pressure.

Analysts say the rupee’s decline and RBI’s interventions underscore broader emerging market vulnerabilities to a strong US dollar, while Nigeria continues to rely on its reserves to maintain stability amid external shocks.