 "rupee swap")
The foreign exchange hedging cost, which plunged after the central bank delivered a ‘super dovish’ monetary policy on February 10, changed direction after the announcement of a $5-billion dollar-rupee sell-buy swap auction on Monday. The one-year dollar-rupee forward premia shot up almost 18 bps after the announcement, but moderated by the end of the trading session on Wednesday, closing at 4.19 per cent.
“The jump in USDINR forward premia after RBI’s sell/buy USDINR swap auction announcement, led to long-term forward premia rise,” said Amit Pabari, MD, CR Forex.
“The main action was seen in 6-12 months and 12-24 months’ window. This attracted
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