 "Reserve Bank of India, RBI")
The Reserve Bank of India’s currency intervention is making the rupee less attractive for carry traders, analysts said.
Its intervention in the spot and forward markets have helped pushed the 12-month implied yields on the rupee -- typically a reflection of interest rate differentials with the US -- to the lowest since 2011, eroding its appeal.
The sharp decline in the implied yields, known as the dollar-rupee forward premiums, comes about partly due to how the RBI is taking its intervention efforts into the forward markets to ensure rupee liquidity in the banking system. The central bank has
