Indian rupee futures open interest has ballooned significantly due to increased arbitrage trading, with market participants anticipating further intervention by the Reserve Bank of India.
The rupee traded at 95.65 against the US dollar in early trade, supported by a softer dollar and hawkish minutes from the RBI's recent monetary policy committee meeting.
Financial analysts are debating whether the current weakness in the rupee, which has hovered near the 95-96 level, represents a temporary shock or a new structural norm for the currency.