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Rupee premiums likely to stay above 2% after RBI's push, says report

The RBI looks comfortable with the current level of forward premiums, especially since it has lifted informal restrictions on banks for trading in the non-deliverable forward (NDF) market

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Photo: Bloomberg

3 min read Last Updated : Dec 21 2022 | 1:16 PM IST

The Indian rupee's forward premiums could rise further after the recent intervention by the Reserve Bank of India through public sector banks lifted them from multi-year lows, analysts said.

The 1-year USD/INR implied yield was at 2.08% on Wednesday, hovering near its highest level in about a month. The yield is up about 45 basis points (bps) from its decade low hit on the day of policy outcome on Dec. 7.

The RBI looks comfortable with the current level of forward premiums, especially since it has lifted informal restrictions on banks for trading in the non-deliverable forward (NDF) market, said

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Topics : Indian rupee Reserve Bank Rupee vs dollar public sector banks

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