RBI’s sell-buy swaps slow rupee’s fall but push up forward premiums, making hedging costlier for foreign i
- Posted on October 8, 2026
- By Business News Today
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- 1 min read
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RBI’s sell-buy swaps slow rupee’s fall but push up forward premiums, making hedging costlier for foreign i
The Reserve Bank of India is engaged in dollar sell-buy swaps to stabilize the rupee's value. However, this has resulted in higher forward premiums, making it expensive for foreign investors to hedge. As a consequence, some foreign investments in rupee-denominated assets may decline. Additionally, companies are opting to borrow in rupees and exchange for dollars due to favorable local rates.
