India's central bank on Tuesday decided to relax norms on foreign exchange earnings of exporters as the currency strengthened after falling to record lows.
The Reserve Bank of India said it will allow exporters to retain all their foreign currency earnings in the Exchange Earner's Foreign Currency account. Nonetheless, the total amount of accruals in the exporter account should be converted into rupees on or before the last day of the succeeding month.
In May, the RBI had directed exporters to convert 50 percent of their foreign currency holdings into rupees, to support the currency.
Today, the bank also permitted exporters to cancel and rebook forward contracts up to 25 percent of the total contracts for hedging.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.