Bengaluru, May 23 -- India's banking sector faces a critical juncture as the Reserve Bank of India (RBI) unleashes its most aggressive dollar sales since the 2008 financial crisis. With $34.5 billion net sold in FY25 to stabilise the rupee, liquidity pressures and global economic tremors are sparking concerns.
This decision was followed by the rupee's wild swings, dropping to 87.95 per dollar in February 2025 before rebounding sharply. Could banking stocks buckle under these strains, or will strategic interventions steer stability? Let's unpack the facts.
RBI Policy
The RBI's $34.5 billion net dollar sale in FY25 marks its boldest move since the global financial crisis. Primarily targeting rupee stability, the central bank countered a sur...