# PNB scam fallout: Rupee forwards crash as banks stop issuing LoUs | News on Markets - Business Standard

> Banks have curtailed issuing letters of credit and guarantees after the PNB fraud, causing one-year rupee forward rates to fall about 50 paise to 239 paise. The move reflects acute dollar shortage and disrupts cross-border trade.

- Date: 2018-03-07 · published 2018-03-07T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/66267-pnb-scam-fallout-rupee-forwards-crash-as-banks-stop-issuing-lous-news-on
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Disrupted letter-of-credit access and dollar shortages can delay or raise the cost of Indian imports of feed and oilseed commodities.

## Read by commodity

- USDINR: bullish ▲

## Sources

- business-standard.com: https://www.business-standard.com/article/markets/rupee-forward-rates-crash-spike-in-spot-rates-as-banks-stop-lous-118030701267_1.html

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