To get a sense of the pressure India’s financial markets were straining under before a wave of support measures announced last week, look no further than the record amounts of dollars the central bank had committed to support the beleaguered rupee.
The RBI’s net-short dollar book, a measure of the degree it had sold forward its stockpile of the US currency, climbed to about $110 billion-$115 billion across onshore and offshore markets, according to people familiar with the developments. That’s about 16% of its total dollar holdings and represents a sharp rise from $95.3 billion in April.
