# RBI's forex surprise moves stabilize rupee

> RBI's surprise FCNR scheme and policy shifts stabilized rupee after 4 months of market volatility.
- Title: RBI's forex surprise moves stabilize rupee · Financialexpress
- Summary: RBI's surprise FCNR scheme and policy shifts stabilized rupee after 4 months of market volatility. rbi, fcnr, rupee · reported by Financialexpress.
- Keywords: rbi, fcnr, rupee, forex, forex reserves, rbi policy, currency reserves, forex scheme, rbi forex, rbi measures, rbi policy measures, business
- Source: Financialexpress — https://financialexpress.com/opinion/the-twists-in-the-tale-on-forex-front/4362589
- Author: FE Bureau
- Published: 2026-10-15T18:07:53+00:00
- Read time: 1 min
- Topics: rbi, fcnr, rupee, forex, forex reserves, rbi policy, currency reserves, forex scheme, rbi forex, rbi measures, rbi policy measures, business
## RBI's surprise policy approach
The RBI used rational expectations theory to surprise markets with forex reforms.
## FCNR scheme launch
RBI introduced foreign currency non-resident deposits scheme after stating strong forex reserves.
## Ruble strength boost
Rupee strengthened by 90 paise within days as banks rushed to deposit funds.
## Scheme termination
RBI terminated FCNR scheme by month-end after $57 billion inflows.
## Reserve fluctuations
RBI's forex reserves peaked at $648 billion then dropped to $604 billion.
## Bank credit growth
Banks added rs 24 lakh crore between may and september with fcnr inflows.
## CRR rate hike
RBI raised daily crr balances after policy meeting causing bond yields to rise.
## Derivative market changes
RBI reduced trading limits for speculative activities in forex derivatives.
## Market stabilization
Rupee stabilized at 95-96 range after derivative market measures.
## Key takeaway

RBI's surprise FCNR scheme and policy shifts stabilized rupee after 4 months of market volatility.