India’s central bank stepped into the foreign exchange markets to support the rupee after the currency weakened toward a record low as a renewed surge in crude prices weighed on sentiment.

Emerging-market currency volatility has dropped to the lowest since the start of year and that’s re-energizing carry trades, particularly those involving Latin America that are seen to offer the juiciest returns.

Emerging-market stocks slumped, with a key gauge sliding into technical correction on mounting concerns the outlook for artificial intelligence no longer justifies the industry’s elevated valuations.

Citigroup Inc. says its Indian corporate clients are expecting the rupee will keep weakening and are looking for products that will enable them to profit from its volatility.

Some Indian insurers are asking regulators to allow them to use more interest-rate hedging tools as they prepare to play a larger role in the country’s money markets, according to people familiar with the matter.

Some Indian insurers are asking regulators to allow them to use more interest-rate hedging tools as they prepare to play a larger role in the country’s money markets, according to people familiar with the matter.

Short dollar forward positions ballooned to $106.7 billion in May.

Over the past two years, India’s central bank built one of the world’s largest bearish dollar bets to support a persistently weak rupee. It now faces the challenge of unwinding that position without destabilizing the currency market.

ICICI Bank Ltd., India’s second-largest private-sector lender, is in talks to raise at least $500 million in offshore bonds as it seeks to capitalize on a recent Reserve Bank of India concession for overseas borrowings, according to people familiar with the matter.

European authorities formally recognized India’s sovereign debt clearinghouse as a permitted trading counterparty, making it easier for lenders like Deutsche Bank AG and BNP Paribas SA to trade bonds in the Asian nation.

India’s central bank has proposed broader participation in the country’s money market to include shadow lenders, companies and other financial institutions, in a move aimed at deepening funding markets and expanding access to short-term liquidity.

India’s benchmark bond yields and swap rates fell to their lowest levels in three months as the nation’s central bank Governor pushed back against expectations for tighter monetary policy.

India’s central bank allowed lenders to extend loans against foreign-currency deposits raised under a special program offered to overseas citizens, a move that could see billions in dollar inflows over the next few months.

Most emerging-market currencies slid Monday on the back of a stronger dollar as rising bets the Federal Reserve will hike rates this year sapped risk appetite, overshadowing the latest developments in the Middle East as the US and Iran make progress toward a peace deal.

At least four lenders including the State Bank of India are preparing to raise about $2.5 billion selling bonds in the coming weeks, tapping a Reserve Bank of India facility that makes it cheaper to borrow dollars, according to people familiar with the matter.

A blazing rally in India’s short-end bonds, driven by plans to attract foreign capital, may fizzle out because the central bank is expected to drain excess cash from the financial system, according to analysts.

India’s rupee rallied to the strongest level in six weeks, fueling bets the currency can extend gains helped by the authorities’ steps this month to boost foreign-currency inflows.

Some Indian lenders have asked the central bank if they can help individuals access loans from overseas banks to bring in more capital under a new plan, according to people familiar with the matter, potentially amplifying inflows into the country.

A tweak to a single sentence within an arcane central bank circular has opened the door for billions of additional dollars to flow into India under a new incentive plan.

To get a sense of the pressure India’s financial markets were straining under before a wave of support measures announced last week, look no further than the record amounts of dollars the central bank had committed to support the beleaguered rupee.