India One-Month Dollar Forward Premium At Highest In Two Decades On Large Dollar Flows
Traders said the unexpected surge in forward premiums has made the spot market highly illiquid Near-term forward premiums in India surged on Tuesday with the one-month dollar/rupee premium trading at its highest level in more than two decades as massive dollar inflows towards an initial public offering skewed prices. The partially convertible rupee was trading largely steady at 73.91/92 per dollar at 0830 GMT compared to its close of 73.9150 on Monday after earlier rising to 73.7725 levels. "As long as the carry is at such elevated levels, no one will go long dollar," the head of foreign exch...
Source: ndtv.com