# Foreign exchange hedging cost rises after RBI dollar-rupee swap plan | Economy & Policy News - Business Standard

> The one-year dollar-rupee forward premium closed at 4.19% on February 23 after the RBI announced a $5 billion sell-buy dollar-rupee swap auction for March 8. The swap lifted long-dated forward premia, which attracted exporters to sell forwards.

- Date: 2022-02-24 · published 2022-02-24T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/42987-foreign-exchange-hedging-cost-rises-after-rbi-dollar-rupee-swap-plan-economy
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The move mainly affects hedging costs for exporters and importers and is a central bank liquidity tool. It has little direct effect on feed or commodity prices.

## Read by commodity

- USDINR: neutral

## Sources

- business-standard.com: https://www.business-standard.com/article/economy-policy/foreign-exchange-hedging-cost-rises-after-rbi-dollar-rupee-swap-plan-122022400068_1.html

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