Fall in forward premiums adds to Indian rupee’s challenges

The Indian rupee, already under pressure from high U.S. Treasury yields and volatile oil prices, is now having to contend with a drop in forward premiums, owing to worries over dollar liquidity. The rupee is quoting at 83.2825 to the U.S. dollar, having avoided succumbing to its lifetime low of 83.29 over the past several sessions likely due to, say traders, the Reserve Bank of India's regular intervention. The weeks-long jump in U.S. yields to multi-year highs and the volatility in oil prices since the Middle East conflict broke out has forced the RBI to intervene almost on a daily basis, according to traders.