The Indian rupee declined by 0.4%, closing at 93.4975 per dollar, following the Reserve Bank of India's (RBI) decision to ease some restrictions on currency market transactions. The RBI announced it would withdraw measures that had previously barred banks from offering rupee-linked non-deliverable forwards, a popular tool for offshore trading. This change has reduced the gap between three-month forward points in the offshore and local markets from about 30 to 16. Despite this relaxation, the RBI maintained a $100 million cap on banks' open positions, which was imposed earlier this year. Analysts noted that while the easing of restrictions could provide opportunities for corporates to speculate and arbitrage, it might not be straightforward. The RBI's previous measures were introduced to curb speculative bets that had driven the rupee to record lows, particularly during the oil price shock linked to the Iran war. Since the imposition of restrictions on March 27, the rupee has appreciated by nearly 1.5%. The RBI aims to restore normal hedging activity while preventing excessive speculation, according to Kunal Sodhani, head of treasury at Shinhan Bank India.