# USD/INR onshore-offshore rates converge, push forward premiums lower - bankers

> Narrowing gaps between USD/INR onshore and non-deliverable forward rates are prompting market participants to unwind arbitrage positions. Forward premiums are falling as a result.

- Date: 2022-11-17 · published 2022-11-17T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/38957-usd-inr-onshore-offshore-rates-converge-push-forward-premiums-lower-bankers
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Changes in rupee forward premiums affect the cost of hedging dollar purchases by Indian importers, but have little direct bearing on feed or grain prices.

## Sources

- reuters.com: https://www.reuters.com/article/markets/currencies/usdinr-onshore-offshore-rates-converge-push-forward-premiums-lower-bankers-idUSL4N32D134/

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