The Reserve Bank of India on Tuesday relaxed rules for foreign investors in exchange-traded currency derivatives by increasing the trading limits allowed without an underlying exposure for the dollar/rupee pair to $15 million per exchange from $10 million earlier.
The RBI also said that foreign portfolio investors can take long or short positions of up to $5 million in euro/rupee, pound sterling/rupee, yen/rupee pairs in exchange traded derivatives.
Hedging The central bank also permitted importers to hedge up to 100 per cent of their eligible limit in the exchange-traded market compared with 50 per cent earlier.
