💨 Abstract

The article discusses the expected continuation of a three-month rally in dollar-rupee forward premiums due to anticipation of further large U.S. interest rate cuts and cautious monetary easing by the Reserve Bank of India. Higher premiums make hedging of FX risks more expensive for importers. The 1-year implied yield has already risen by 75 basis points over the past three months and is expected to reach 2.6

Courtesy: theprint.in

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