# Low Indian rupee premiums prompt exporters to explore alternative hedges | Reuters

> 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.

- Date: 2023-06-23 · published 2023-06-23T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/35781-low-indian-rupee-premiums-prompt-exporters-to-explore-alternative-hedges-reuters
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

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.

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/low-indian-rupee-premiums-prompt-exporters-explore-alternative-hedges-2023-06-23/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.