Strategists at Nomura, including Craig Chan, noted in a research report that based on data disclosed by the Reserve Bank of India, new foreign exchange inflows of $95.6 billion were recorded in August through the preferential swap facility. Accordingly, they estimate that the central bank's net forward short position may have expanded to $232.3 billion in August.

In July, the Reserve Bank of India's net dollar short position surged to a record $136.8 billion, reflecting the rising future liabilities stemming from measures introduced to attract foreign capital, including deposit schemes aimed at overseas Indians.

Institutional estimates suggest that the Reserve Bank of India made combined net dollar sales of $15.3 billion in both the spot and forward foreign exchange markets during August.

Analysts stated that the Reserve Bank of India will remain cautious in utilizing its spot foreign exchange reserves, while also looking to accumulate dollars when conditions become favorable.