India Trading Ban Rocks $149 Billion-a-Day Offshore Rupee Market

India's recent trading ban has significantly disrupted the offshore rupee market, which sees daily volumes of $149 billion. This move aims to bring trading back onshore but has created immediate volatility and uncertainty for international investors and banks heavily involved in non-deliverable forwards (NDFs). The policy could lead to increased costs and reduced liquidity in the short term, impacting forex hedging strategies and potentially influencing the rupee's stability as market participants adjust to the new regulatory landscape.