# Rupee at 94 against the dollar, RBI rolls out FCNR-B scheme and $10bn swap to stem the slide
> India's currency has depreciated 10% in twelve months; the central bank is defending with reserves, a swap line and subsidised hedging for inbound deposits

**Meta:** type: story · date: 2026-06-05 · heads: أموال من, ما لا يقولونه · 10 takes · 5 lenses · 5 regions

## Summary

The [Indian rupee](/ar/entity/currency/indian-rupee) traded at 94.3080 per US dollar on June 26, 2026, a 10.31% depreciation over twelve months and a 7.04% slide year-to-date. The [RBI](/ar/entity/org/reserve-bank-of-india) launched a three-part currency defence package on June 5 alongside the rate hold: a Foreign Currency Non-Resident Bank (FCNR-B) deposit scheme in which the RBI bears the full foreign-exchange hedging cost for banks raising three-to-five year deposits, expected to attract $20 billion in NRI inflows; a $10 billion dollar-rupee swap to inject domestic liquidity; and an expansion of the Fully Accessible Route (FAR) for government securities to include all new 15-, 30- and 40-year issuances. On June 23, the RBI further allowed banks to lend against FCNR-B deposits. Foreign-exchange reserves stood at $672.587 billion as of June 19, recovering from a $681.6 billion low on June 6, but well below the March 2026 peak of $728.5 billion. Falling crude prices offered late-June relief: Brent retreated from $111-121 per barrel in early June toward $69-77, reducing the oil-import bill that drives India's current account.

## The split

Indian press anchors on the RBI's arsenal and the temporary relief from lower oil prices. Bloomberg and MUFG frame this as a structural defence against a multiyear dollar-strength cycle: FPI equity outflows of $17-18 billion in 2026, coupled with US tariffs of 26-50% on Indian goods, have created persistent current-account pressure the FCNR-B scheme partially offsets. The rupee's 10% twelve-month slide is steeper than peer EM currencies in Asia, and the reserves drawdown of $56 billion from peak warrants attention that most domestic coverage does not give it.

## By the numbers

- 94.3080, USD/INR spot rate (June 26, 2026)
- 10.31%, twelve-month rupee depreciation vs dollar
- 7.04%, year-to-date 2026 depreciation
- $672.587bn, forex reserves (week ended June 19); down from $728.5bn peak in March 2026
- $107.9bn, gold component of reserves (up $4.1bn in latest week on revaluation)
- $20bn, targeted FCNR-B inflow from the hedging-cost scheme (June 8 to September 30, 2026)
- $10bn, dollar-rupee swap injected June 2026
- $17-18bn, estimated FPI equity outflows from India in calendar 2026

## Why it matters

India imports 88% of its crude-oil needs, so rupee depreciation directly imports inflation, threatening the [RBI](/ar/entity/org/reserve-bank-of-india)'s 4% CPI mandate and eroding purchasing power in a country where fuel has outsized CPI weight. The reserves drawdown is the real indicator to watch: at current burn rates, the $56 billion decline from March to June signals the RBI has been actively defending, not passively watching. [Modi](/ar/entity/person/narendra-modi)'s government faces a political cost if food and fuel prices converge upward in an El Niño monsoon year.

## What to watch

- Whether FCNR-B deposits flow in at the $20 billion pace targeted (July-September window)
- Current account and trade data for June-August: does Brent stabilisation cut the import bill?
- Net forward book: whether RBI is rebuilding long-dollar positions or remains short
- FPI equity flows reversing if global risk appetite returns to EM

## Regional takes (batched by bias / lens)

### unlabelled
- **Reserve Bank of India** (India, en) — RBI Reference Rate Archive showing USD/INR reference rate at 94.698 on June 24, 2026, and daily rates throughout June confirming the 94-handle.
  Source: https://www.rbi.org.in/scripts/referenceratearchive.aspx
- **Business Standard** (India, en) — 
  Source: https://www.business-standard.com/finance/personal-finance/will-rupee-strengthen-or-weaken-why-experts-see-relief-now-but-risks-ahead-126062200092_1.html
- **The Print** (India, en) — 
  Source: https://theprint.in/economy/indias-forex-reserves-rise-by-usd-963-mn-to-usd-672-587-billion-rbi-data/2970755/
- **The Wire** (India, en) — 
  Source: https://m.thewire.in/article/economy/rupee-depreciation-dollar-indian-economy
- **US Federal Reserve H.10** (United States, en) — 
  Source: https://www.federalreserve.gov/releases/h10/hist/dat00_in.htm
- **ExchangeRates.org** (Global, en) — 
  Source: https://www.exchangerates.org.uk/USD-INR-spot-exchange-rates-history-2026.html

### Indian financial markets / RBI-watchers
- **Business Standard** (India, en) — Reports the week-ended June 19 reserves at $672.587 billion (+$963 million), breakdowns show gold rising $4.1 billion to $107.9 billion while foreign currency assets slipped $3.1 billion. Contextualises the reserve drawdown from the March 2026 peak of $728.5 billion over the prior quarter.
  > "India's forex reserves rose by $963 million to $672.587 billion for the week ended June 19, 2026."
  Source: https://www.business-standard.com/finance/news/india-s-forex-reserves-rise-by-963-mn-to-672-587-billion-rbi-data-126062600834_1.html

### RBI intervention mechanics
- **Business Standard** (India, en) — Details RBI dollar-buying activity: market estimates $2-3 billion on June 17 and $1-2 billion June 18, as the central bank rebuilt reserves and managed its net short forward position. Explains the mechanics of the FCNR-B hedging subsidy.
  > "RBI stepped up dollar purchases to rebuild reserves and manage a net short forward book, absorbing an estimated $3-5 billion in two sessions."
  Source: https://www.business-standard.com/finance/news/rbi-steps-up-dollar-buying-to-rebuild-reserves-manage-forward-book-126061801311_1.html

### global capital markets / EM FX
- **Bloomberg** (Global / United States, en) — Notes the RBI's additional June 23 measure allowing banks to lend against FCNR-B deposits, extending the June 5 package. Frames the whole set as an orchestrated effort to attract $20 billion in NRI inflows to partially offset the $17-18 billion FPI equity outflows in 2026.
  > "The RBI is allowing banks to leverage FCNR-B deposits for lending, part of a broader campaign to attract $20 billion in fresh inflows."
  Source: https://www.bloomberg.com/news/articles/2026-06-23/rbi-allows-banks-to-lend-against-forex-deposits-to-boost-inflows

### G10/EM FX institutional
- **MUFG Research** (Global / Japan, en) — MUFG's FX team analyses the full June 5-8 RBI package: FCNR-B hedging subsidy, $10 billion dollar-rupee swap, FAR extension to longer tenors, and tax exemption for FPI G-sec holdings. Estimates the combined firepower at roughly $30 billion when FPI bond inflows are included, calling it 'India's most comprehensive currency defence since 2013.'
  > "The June package represents India's most comprehensive rupee defence since the 2013 taper tantrum, combining direct intervention, deposit incentives and FPI tax relief."
  Source: https://www.mufgresearch.com/fx/india-shoring-up-the-indian-rupee-rbi-june-2026-measures-8-june-2026/

## Across the graph
- Related: [[rbi-rate-hold-june-2026]], [[india-fpi-bond-tax-exemption-2026]], [[india-fy26-gdp-7-7]]
- Entities: Currency:indian Rupee, Org:reserve Bank of India, Person:narendra Modi

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