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flag India's central bank restricts banks' rupee trades, causing a currency rally.

flag The Reserve Bank of India has criticized banks for exacerbating rupee pressure through arbitrage trades, particularly during tensions. flag Regulators have imposed a $100 million net open position limit and banned offshore derivatives, forcing banks to unwind roughly $30 billion in bearish positions. flag Since the measures began, the rupee has strengthened, becoming Asia's top-performing currency this year.

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