Rupee Forward Premium Narrows Despite Underlying Premium Remaining Elevated
1 report, 1 independent
Updated Oct 9
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What happened
Rajeev Sharan analyzed the rupee’s forward premium on October 9, 2026. The one-month dollar/rupee forward premium narrowed from around 50 paise on October 8 to 15-20 paise. Although the spot rupee weakened, the one-month non-deliverable forward points stood at 45.01 paise, which is above the 12-month average of 28.99 paise.
From moneycontrol.com
Why it matters
The narrowing of the spot-forward gap suggests the immediate pressure on forward-dollar pricing has eased. However, the elevated non-deliverable forward premium indicates that the underlying market premium remains high, aligning with the gap between Indian and US interest rates.
From moneycontrol.com
Who's involved
- Rajeev SharanResearcher providing expert analysis and commentary
- BrentSubject of positional analysis by Rajeev Sharan
- El NiñoNo direct relationship observed in the provided evidence
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The entities involved
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Rajeev Sharan
researcher (ORCID 0000-0002-3487-3884)
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