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The Reserve Bank of India has been intervening in the rupee and bond markets after the post-election dollar rally. Forward premia collapsed due to FCNR(B) maturities, and surplus rupee liquidity from demonetisation pushed the 10-year yield to its lowest since 2009.
The RBI also accepted variable-rate reverse repo bids at high cut-offs to support yields.
Central bank intervention may slow the rupee's slide, but it does not remove the underlying pressure from capital outflows and the stronger dollar. Importers should watch forward pricing for a clearer view of currency risk.
in.investing.comNov 28, 2016Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
