RBI's forex swaps, arbitrage spur inversion of rupee forward premiums curve

Quick Summary:

The NDF dollar/rupee rates have been rising due to the rupee's weak outlook, leading to the arbitrage.

The RBI's FX swaps are skewing the forward premium curve, said Madhavi Arora, lead economist at Emkay Global Financial Services.

The central bank intervened via both methods on Thursday as well, as the rupee dropped to a lifetime low of 84.88 per US dollar.

---

More Pictures

---

Read Quick SummarySave Time

or

Article Details

Category: BusinessFinance

Markets: India

Topics: Rupee depreciation Rupee forward premiums RBI intervention NDF market Onshore-offshore arbitrage Forex hedging RBI forex swaps India forex market Rupee liquidity Implied yields Dollar/rupee forward curve

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-12-12 @ 14:47:42 (7 hours ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 417 words

Reading Time: 3 minutes read

Sentences: 17 lines

Sentence Length: 25 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 24373107

View Article Analysis

About Business Standard

Main Topics: BusinessFinance

Official Website: business-standard.com

Update Frequency: 310 posts per day

Year Established: 1975

Headquarters: India

News Last Updated: 2 hours ago

Coverage Areas: India

Ownership: Independent Company

Publication Timezone: GMT +5:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #49

Publisher Details

Frequently Asked Questions