# Dollar/rupee premiums to rise as US-India interest rate gap seen widening - analysts

> Indian FX traders are betting on wider dollar/rupee forward premiums as US rates are expected to ease later this year. The USD/INR 1-year implied yield is forecast to rise toward 3% within fiscal 2024 from about 2.40%.

- Date: 2023-03-31 · published 2023-03-31T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/37138-dollar-rupee-premiums-to-rise-as-us-india-interest-rate-gap-seen-widening
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Widening rate differentials raise the cost of hedging rupee exposure, which matters for importers of feed inputs priced in dollars. The effect on grain and meal prices is indirect.

## Read by commodity

- USDINR: neutral

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollarrupee-premiums-rise-us-india-interest-rate-gap-seen-widening-analysts-2023-03-31/

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