USD/INR forward premiums jump on bets Fed to slow rate hikes
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
USD/INR forward premiums rose on Friday after Treasury yields plunged overnight on increasing likelihood that the U.S. Federal Reserve will opt for small rates hikes from December.
The USD/INR 1-year implied yield climbed to 2.43%, from 2.31% in the previous session. The October forward premium rose to 1.91 rupees, from 1.82 in the previous session.
"October is catching a bid, thanks to the big fall in Treasury yields and to a small extent, the rally in rupee," a swaps trader said.
