Rupee drops, forward premiums climb after RBI relaxes currency-supporting curbs - Reuters

<a href="https://news.google.com/rss/articles/CBMisAFBVV95cUxPMWgzVnZpcUdYRWNUYmt0eVVNSUUzRVNlaUljUG9pSkNBY3BXd0Z0X1VsMzRJSENGUExjV2ttVGN2NnNzVEN0UWtEVDJGUm80WUZ1ODRlZDB4cTZHYW8wbVo3Q1FoYjFhWS1Hb0xmTVVKbmRrRVIxT1BSUlNIZFY5MWZPSVdnQVBIbFJXb3ZiUl9ZblFfYnFnRlRjeTVIck1Fcy1aelkyRVlLemNmME80Tg?oc=5" target="_blank">Rupee drops, forward premiums climb after RBI relaxes currency-supporting curbs</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

The Indian rupee declined and forward premiums surged after the Reserve Bank of India partially rolled back measures aimed at supporting the currency. The rupee fell 0.30% to 93.4050 per U.S. dollar, while the implied interest rate on the 1-year forward premium increased by 14 basis points to 3.14%.

The Reserve Bank of India has partially rolled back some of the measures announced on April 1 that had barred banks from offering rupee-linked non-deliverable forwards, after stability returned to the foreign-exchange market. Under the revised rules, banks can now undertake certain related-party transactions, including cancellation and rollover of existing contracts and deals via the back-to-back route.

The rupee opened 18 paise lower on April 21, as traders digested the Reserve Bank of India’s partial roll-back of some of the most stringent restrictions it had imposed in the offshore non-deliverable forwards (NDF) market. The rupee opened at 93.31 against the dollar after ending the previous session at 93.13.