The Indian rupee strengthened the most in six months after the central bank took some of its strongest measures to bolster the currency since the 2013 taper tantrum.

The Reserve Bank of India is broadening its defenses to steady the rupee, taking some of its strongest measures since the 2013 taper tantrum. That may give the currency a boost as trading resumes Monday, but the question remains: how far is the central bank willing to go as external pressures mount?

India’s central bank rolled out a series of measures to support the sliding rupee in its strongest action since the country’s currency crisis in 2013.

India’s central bank has put all kinds of support around the rupee, and it’s only just stopping the currency from hitting a record low.

India’s central bank is poised to raise interest rates for the first time in nearly four years on Wednesday as rising inflation and a rupee near record lows force policymakers to shift gears.

Latin American currencies posted some of the biggest gains on Monday, with the Brazilian real spearheading the advance after right-wing candidate Flávio Bolsonaro surged to a surprise lead in the first round of the presidential election.

Just months ago, India’s central bank pulled out all the stops to draw in dollars to bolster its foreign-exchange reserves and defend the rupee. The stronger-than-expected deluge of cash is now adding to the case for a more hawkish monetary policy stance.

India will keep its federal borrowing for October to March close to target amid fiscal pressures, while aligning the program with the central bank’s effort to drain record cash netted from the nation’s vast diaspora.

India’s central bank carried out currency swaps worth at least $10 billion in recent weeks to reduce liquidity in the financial system, according to people familiar with the developments, as the authority seeks to curb inflation risks from surplus cash.

India’s central bank sold 500 billion rupees ($5.2 billion) of bonds under its open market operation program as it stepped up efforts to drain excess cash in the financial system.

A sense of unease is gripping India’s bond traders as they fear the central bank’s push to drain excess cash from the financial system, just as inflation picks up and a global debt selloff intensifies, will spark an extended slump.

Indian bonds slumped after the central bank said it would sell sovereign notes to drain cash from lenders, adding to the supply of debt in a year when the market is already under pressure from record government borrowing.

India’s central bank will drain 1 trillion rupees ($10.5 billion) from lenders through bond sales, its strongest effort yet to tackle a massive build-up of surplus cash in the banking system that poses inflationary risks.

India’s foreign-exchange reserves rose by the most on record, boosted by a blockbuster overseas capital-raising program, and giving the central bank more ammunition to defend the nation’s struggling currency.

Bets against India’s short-term bonds are rising, with traders wagering that yields will go up on the central bank’s efforts to drain excess cash from the banking system.

India’s central bank used currency swaps to drain cash from banks, according to people familiar with the matter, as excess funds in the financial system climbed to a record.

An index tracking emerging-market equities rallied at the start of the week, closing at its highest level in more than two months, as optimism over new AI models helped counter the drag from increased oil prices.

A record cash surplus in India’s banking system is driving away borrowers.

India’s rupee gained as the central bank garnered $136 billion under its capital-raising measures, far exceeding expectations and further boosting its war chest to defend the currency.

Inflows under the Reserve Bank of India’s special overseas deposit facility have topped the $100 billion mark, the Financial Express newspaper reported Wednesday, citing officials it did not identify.