# Fall in onshore forward premiums could push India rupee even lower

> The one-year onshore forward premium for the rupee fell to its lowest level since 2011 after RBI forward market intervention and a shortage of cash dollars. Traders warned the rupee could slide toward 79-80 per dollar as carry trades unwind.

- Date: 2022-06-23 · published 2022-06-23T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/41211-fall-in-onshore-forward-premiums-could-push-india-rupee-even-lower
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A weaker rupee raises India's import costs for oil and other commodities and can weigh on Indian demand sentiment for imported feed inputs. Smaller forward premiums make carry trades less attractive, adding downside pressure on the currency.

## Read by commodity

- USDINR: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/fall-onshore-forward-premiums-could-push-india-rupee-even-lower-2022-06-23/

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