$127 billion deposits raise new rupee risk as banks face future FX interest bills
· economictimes.indiatimes.com
With over $127 billion raised in overseas FX deposits since June, Indian banks are now confronting a risky situation regarding unhedged future interest payments. This creates a likelihood for heightened dollar demand, posing a threat to the rupee's stability. While many foreign banks have taken precautionary measures, Indian lenders have not. If the rupee faces renewed weakness, it could spark a frantic quest for dollars amid rising exchange rates.
Live Events
COSTLY HEDGES, RUPEE RISKS
as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to ou...