The Reserve Bank of India’s reliance on the forward market to manage the rupee has become increasingly pronounced, with its net outstanding forward dollar sales touching a record $106.6 billion at May-end. The scale of the position underscores how forwards have become central to the central bank’s currency-management strategy amid sustained pressure on the rupee. The RBI’s net outstanding forward dollar sales rose to a record $106.6 billion at the end of May, having climbed steadily since September 2025 as the central bank sought to contain rupee volatility without running down its foreign exchange reserves too rapidly.