# The US-Iran conflict's escalation in Feb 2026 put the Indian rupee under sharp pressure.

*business · news · 2026-04-14 · Times of India*

## Key points

- RBI capped banks' net dollar positions at $100 million, forcing them to offload excess holdings.
- For the first time, RBI barred banks from offering rupee hedging contracts in offshore NDF markets.
- RBI banned 'churning' of forex contracts, requiring banks to unwind such positions by April 10.
- Banks faced estimated losses of Rs 2,500-4,000 crore due to abrupt rule changes and forced unwinding.
- RBI's measures reversed its earlier policy of encouraging offshore rupee trading at GIFT City.

**Countries:** India, United States, Iran

[Read the full story on Times of India](https://timesofindia.indiatimes.com/business/india-business/what-is-rbis-fight-with-forex-markets-all-about/articleshow/130249387.cms)

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