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Cash-spot spreads spike to record high of 46 paise over huge dollar supply

Massive dollar surplus increased demand for rupee liquidity

One of the major gainers from the policy could be NBFCs
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One of the major gainers from the policy could be NBFCs

Anup Roy Mumbai
A huge surplus of dollars in the market shot dollar-rupee cash-spot spread to a record high of 45-46 paise, from its usual 3-5 paise on the last working day of the fiscal 2018-19, partly because banks that failed to swap their dollars with the Reserve Bank of India (RBI) on March 26 had to shed their dollar holding to get rupee liquidity. 

Cash-spot is an interbank market that witnesses huge volume of transactions. The market comprises three rates — spot, cash and tom (short for tomorrow). 

A “spot rate” is one at which a deal is settled in the second working day

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First Published: Mar 30 2019 | 12:50 AM IST

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