# India 1-mth dlr forward premium at highest in two decades on large dlr flows

> One-month dollar/rupee forward premiums in India hit their highest level since at least 2000 on May 4. Large dollar inflows tied to an initial public offering and offshore unwinding skewed forward prices and made spot trading illiquid.

- Date: 2021-05-04 · published 2021-05-04T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/47386-india-1-mth-dlr-forward-premium-at-highest-in-two-decades-on-large-dlr-flows
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The forward premium reflects temporary dollar supply in the financial system rather than a shift in trade or commodity fundamentals. Its effect on feed import costs is limited.

## Read by commodity

- USDINR: neutral

## Sources

- reuters.com: https://www.reuters.com/world/india/india-1-mth-dlr-forward-premium-highest-two-decades-large-dlr-flows-2021-05-04/

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