Rupee's forward premiums may stay above 2% ahead after RBI's intervention
It needs to be noted that the 1-year USD/INR implied yield is above 45 basis points from its decade-low hit which was witnessed on December 7 when RBI announced its latest monetary policy.
Indian rupee's forward premiums are factored to pick up further after the RBI's recent intervention through public sector banks which bolstered them from their multi-year lows. On Wednesday, the 1-year USD/INR yield crossed 2% floating near its highest level in a month. Currently, the rupee is near 82.77 levels against the US dollar, slightly weakened from the previous day.