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Rupee/dollar forward premiums have fallen sharply as the U.S.-India interest rate gap narrows, with the 1-year forward implied yield near 1.70%, close to decade lows. Exporters are looking for alternative hedging tools because premiums are expected to stay low while the Fed keeps tightening.
Cheap forward cover affects how Indian buyers and exporters manage currency risk on feed and grain trades, but it has little direct effect on commodity prices.
reuters.comNimesh VoraJun 23, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
