# RBI sets high cut-off at FX swap auction, forward rates jump

> The Reserve Bank of India set a premium of 8.38 rupees at a three-year buy-sell swap auction and accepted the full planned $5 billion. Bids totalled $18.65 billion, and the one-year forward premium rose to its highest level since October 2018. The central bank is absorbing surplus dollars to limit rupee appreciation while supplying rupee liquidity to banks.

- Date: 2019-04-23 · published 2019-04-23T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/59883-rbi-sets-high-cut-off-at-fx-swap-auction-forward-rates-jump
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Heavy RBI dollar absorption tightens the rupee's forward pricing and signals a managed currency, which affects the cost of dollar-denominated feed and oilseed imports for Indian buyers.

## Read by commodity

- USDINR: neutral

## Sources

- livemint.com: https://www.livemint.com/news/india/rbi-sets-high-cut-off-at-fx-swap-auction-forward-rates-jump-1556025251535.html

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