MEVHunter
The Indian Rupee continued to weaken this week. What signals does this reflect?
Key observation: The buying pressure of USD in the merchant and NDF markets continues to increase. Even though the central bank has intervened to support, the market’s selling pressure seems stronger—what does this indicate? It shows that the market’s expectation of Rupee depreciation is very firm.
From a trading perspective, increased NDF (Non-Deliverable Forward) USD buying usually signals two things: first, market participants are pessimistic about the Rupee; second, they are optimistic about the USD appreciatio
View OriginalKey observation: The buying pressure of USD in the merchant and NDF markets continues to increase. Even though the central bank has intervened to support, the market’s selling pressure seems stronger—what does this indicate? It shows that the market’s expectation of Rupee depreciation is very firm.
From a trading perspective, increased NDF (Non-Deliverable Forward) USD buying usually signals two things: first, market participants are pessimistic about the Rupee; second, they are optimistic about the USD appreciatio