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.
Read more at the source
Disclaimer: The content of this post is sourced from external sites and is for informational purposes only. All rights and credits belong to the original authors and publishers.