RBI's Forex Intervention and BoP Management

RBI actively defends rupee at 97 mark, with inflow push from FCNR deposits boosting BoP surplus. Rupee gains for four sessions. May BoP deficit of $4.4bn highlights volatility. Recent analysis shows rupee remains weak due to BoP deficit, weak capital account, reserve accumulation, and a $100bn forward book short, despite $32bn inflows. Forex reserves as % of GDP hit an all-time low of 3% in June 2026.