On February 28, the Reserve Bank of India (RBI) conducted a US dollar-rupee swap valued at $10 billion to inject long-term liquidity into the financial system. The auction reportedly drew robust demand. Following this intervention, the Indian rupee experienced fluctuations, with reports indicating a potential for a steeper decline due to trade war concerns and economic growth fears. A Reuters poll suggested that the rupee may extend a mini-rally as the dollar faces growth worries. However, the rupee dipped and forward premiums plunged after the RBI's forex swap, reflecting ongoing volatility in the currency market. Additionally, Indian firms are increasing long-term foreign exchange hedges in response to the rupee's swings and to manage costs effectively. Despite the challenges posed by external factors, India's economic growth is projected at 6.5% for FY26, according to CRISIL, even amid threats from tariffs imposed by the Trump administration.