INDIA-RUPEE-India's RBI carries out buy/sell USD-INR swaps, traders say
MUMBAI, Jan 17 (Reuters) - India's central bank is conducting buy/sell dollar/rupee swaps alongside selling dollars in the spot market to support the rupee, traders said, which fuelled a further drop in forward premiums.
The Reserve Bank of India's buy/sells swaps are largely for spot over June, July and December, according to traders.
The 1-year forward implied yield dropped to 2.36% and is down 18 basis points this week. Estimates of the quantum of buy/sell swaps the central bank has carried out this week range from $3 billion to $7 billion.
The central bank may conduct buy/sell swaps if it wants to manage the impact of its spot intervention on domestic liquidity.
(Reporting by Nimesh Vora; Editing by Savio D'Souza)
((nimesh.vora@thomsonreuters.com; +91 22 6921 7896;))
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