India Rupee Volatility, Forward Premiums Decline

  Published 1 year ago

India's rupee remains rangebound with stable spot market as forward premiums drop, driven by RBI rate cuts and U.S. rate expectations.

  • 1-year dollar, rupee implied yield hits 1-year low; 1-month premium falls to November levels.
  • Lower forward premiums reduce the rupee's carry trade appeal and exporter hedging incentives.
  • Speculative forward activity rises as markets anticipate a potential USD/INR range breakout.
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