Traders at Reliance Industries Ltd. are formulating strategies to manage the company's cash reserves in light of anticipated interest rate hikes by the Reserve Bank of India (RBI). One key proposal involves reallocating cash from liquid mutual funds into short-dated money market instruments, as the yield spread between these instruments and the benchmark rate has widened beyond the five-year average. This shift could yield capital gains as rates are expected to rise. Additionally, traders are considering reducing their allocation to longer-dated bonds, which are more vulnerable to interest rate fluctuations. Market expectations suggest around 50 basis points of rate hikes this year, although most economists believe the RBI will keep the benchmark rate unchanged during its upcoming decision. The discussions come as the rupee has recently slid to record lows but has shown signs of recovery, aided by RBI interventions and geopolitical developments in the Middle East. Reliance's treasury team anticipates that a peace agreement in the region could further strengthen the rupee.