Wary Hedge Funds cut offshore Rupee bets.

Rising crude oil prices, foreign fund outflows and spiking Covid-19 cases weighed on the domestic currency.
Hegde Funds and overseas institution were comfortable to take long position on rupee till they saw robust growth in India amid covid-19 second wave. But the rupee slipped to 75 against one dollar and RBI net sold $600 million in local exchange traded future, spot markets and in non-deliverable forward. Because hedge funds and overseas institution were believed to take strong bets on rupee against dollar but the expectation did not work and instead of that they bought heavy long position in dollar causing higher demand in dollar in NCDs. This large scale position caused slip in rupee. While this types of trades has always impacted rupee-dollar but this time market reaction were too quick which was led by RBI to let banks trade in NCDs in GIFT City International Financial Centre. And in India due to public holidays there was pressure on rupee when currency markets were closed. With the US yields rising global investors are now interested in Investing Dollar-backed market. Since the starting of currency exchange and till now rupee has lost nearly 2100-2200%. From ₹3.3/$ in 1947 to ₹75/$