The Indian central bank's unexpected crackdown on rupee put options last Friday evening has triggered a wave of emergency closures in the banking sector, with arbitrage trades worth up to $30 billion facing intense pressure. According to Jin10, as trading resumed on Monday, the market was gripped by liquidity panic, with insiders estimating that banks closed positions worth $4 billion to $10 billion that day. This leaves a significant portion of positions to be addressed before the April 10 deadline. With the Indian forex market closed on Tuesday and Wednesday due to holidays, Monday's closure frenzy led to the rupee's exchange rate plummeting to a historic low of 94.80, marking the largest daily fluctuation since 2013. The central bank's intervention is one of the most aggressive actions against currency speculation in a decade. Despite signals from U.S. President Donald Trump about a potential withdrawal from Iran, analysts from institutions like Wells Fargo warn that the rupee's fall to 100 per dollar is almost inevitable, driven by high oil prices from the Iran conflict exacerbating India's trade deficit and inflation. Currently, banks are forced to buy dollars domestically to cover offshore short positions, causing the domestic-foreign forward spread to soar to its highest level since 2020.