Business

RBI’s Currency Intervention Ends Up Hurting Rupee Carry Trade

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The sharp decline in the implied yields, known as the dollar-rupee forward premiums, comes about partly due to how the RBI is taking its intervention efforts into the forward markets to ensure rupee liquidity in the banking system. The central bank has spent some $24 billion in the current fiscal year supporting its currency, helping the rupee decline less than Asian peers.  



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