# Anomaly in rupee forwards has traders looking for hand of RBI

> Traders are puzzled by an anomaly in India's rupee forwards, where 12-month implied yields rose about 52 basis points to near a two-year high despite the Reserve Bank of India's third rate cut this year. Some traders suspect the RBI has been buying dollars in the spot market to curb rupee appreciation and offsetting the liquidity impact in forwards.

- Date: 2019-06-24 · published 2019-06-24T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/58890-anomaly-in-rupee-forwards-has-traders-looking-for-hand-of-rbi
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Forward premiums reflect rate differentials and currency liquidity, so the anomaly signals tighter rupee liquidity and possible central bank intervention. For feed buyers importing from or pricing in India, this adds uncertainty to rupee-denominated costs.

## Read by commodity

- USDINR: neutral

## Sources

- livemint.com: https://www.livemint.com/market/stock-market-news/anomaly-in-rupee-forwards-has-traders-looking-for-hand-of-rbi-1561347156230.html

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