The rupee edged higher on Monday, holding within a tight range near 93 per dollar as banks unwound arbitrage positions. Still, dollar demand from importers and oil companies limited gains. The bigger signal was a surge in forward premiums to multi-year highs, reflecting heavy hedging needs. Analysts expect the pair to hover around 93 this week, largely driven by oil prices.
The Indian rupee rose again for a fourth straight session on Wednesday, helped by improved global risk sentiment following a US-Iran ceasefire. At the same time, forward premiums eased as crude oil prices plunged, lowering demand for currency hedging. Analysts say the twin moves reflect shifting expectations for inflation, yields, and energy costs.
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