The Reserve Bank of India’s dollar short forward positions rose $6 billion to $59.4 billion in September – up 11% on month, according to data released on Friday. This is the first time in seven months the RBI’s position in the short forward market has increased.

The rise in short positions can be attributed to the regulator’s increased FX interventions to defend rupee , according to market participants. In the current financial year, the currency has depreciated 3.8% and in September, the rupee fell 0.7%.

“The $6 billion increase in RBI forward position reflects the increased FX intervention to protect rupee and I think they have again relied on forward because it also does not put pressure on the banking system’s liquidity,” said Ritesh Bhansali, deputy CEO at Mecklai Financial Ser

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