Indian Banks Lose $500 Million in FX: A Currency Adventure

In a wild twist, Indian banks lost nearly $500 million in FX trading in early 2026 after the Reserve Bank of India threw a curveball with new rules. They had to scramble to adjust their positions, but thankfully, they managed to snag back around $400 million as the market spread widened. It was a crazy time with rupee ups and downs, foreign investors skedaddling, and a frenzy of currency hedging!