RBI FX Swaps Bolster Rupee Amid Oil Price Surge & Mideast Tensions

The Reserve Bank of India (RBI) conducted over $1.6 billion in dollar/rupee sell-buy swaps to absorb surplus rupee liquidity, significantly pushing up forward premiums. This action makes hedging against the rupee costlier, offering a modest cushion as the currency faces weakness from a renewed rally in crude oil prices, driven by escalating attacks on shipping in the Middle East. This regional central bank's intervention highlights the ongoing global economic pressures, which could indirectly influence Pakistan's economic stability and USD/PKR rates.

بحوالہ / Source: www.brecorder.com