Core Viewpoint - India has significantly increased its intervention in foreign exchange markets to defend the rupee, which has weakened to an all-time low against the dollar, with the Reserve Bank of India's (RBI) net-short dollar book nearing $100 billion [1][2]. Group 1: RBI's Intervention Strategy - The RBI's net-short dollar book was reported at $67.8 billion in January and reached a record of $88.8 billion in February 2025, indicating a substantial increase in its dollar sales [2]. - The RBI has focused its interventions primarily in offshore markets, utilizing non-deliverable forwards (NDFs) to manage the exchange rate without depleting foreign-exchange reserves immediately [4][6]. - The central bank has been selling dollars mainly through short-dated contracts, maturing within weeks to a month, and has also engaged in buy-sell swaps to mitigate liquidity impacts [5]. Group 2: Market Conditions and Challenges - Emerging markets, including India, are facing renewed pressure from a strengthening dollar, which has led to significant equity outflows due to high US tariffs [3]. - The rupee has experienced successive record lows in March, surpassing the critical 92-per-dollar level, indicating ongoing volatility in the currency market [7]. - Analysts from Barclays Plc have noted that the growing derivatives book may pose challenges, as maturing contracts create recurring demand for dollars, potentially hindering any sustained recovery of the rupee [7].

Group 1: Stablecoin Trading Surge - South Korean crypto exchanges experienced a 62% increase in stablecoin trading volumes as the won depreciated to multi-year lows against the dollar, leading to intensified marketing efforts for dollar-pegged tokens [1] - Trading volume for Tether (USDT) on major won-based exchanges reached 378.2 billion won ($261 million) when the exchange rate surpassed 1,480 won per dollar [1] - Major exchanges such as Korbit, Coinone, Upbit, and Bithumb launched aggressive promotional campaigns for stablecoins, waiving trading fees and offering rewards to enhance trading volumes during a downturn in the broader crypto market [2] Group 2: Currency and Banking Responses - South Korea's major commercial banks reduced dollar deposit interest rates to near zero due to government pressure aimed at defending the exchange rate, with Shinhan Bank cutting its rate from 1.5% to 0.1% and Hana Bank from 2% to 0.05% [3] - The government summoned bank executives to discourage excessive marketing of foreign currency deposits, prompting banks to offer incentives for converting dollars to won [4] - Dollar deposit balances at five major banks fell by 3.8% to 63.25 billion dollars, marking the first decline after three months of increases, with corporate deposits dropping significantly from 52.42 billion dollars to 49.83 billion dollars [5] Group 3: Individual Deposits and Presidential Intervention - Individual dollar deposits increased at a much slower rate, rising by only 109.64 million dollars compared to a previous month's increase of 1.09 billion dollars [6] - President Lee Jae-myung made a rare verbal intervention regarding the exchange rate, predicting it would drop to around 1,400 won within one to two months [7]