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BusinessApr 07, 2026 01:13 PM

Regulatory risk restrains bankers from tapping rupee futures-forwards arbitrage

MUMBAI, April 7 (Reuters) - Pricing distortions stemming from the Indian central bank's recent foreign exchange curbs have opened up arbitrage between exchange-traded rupee futures and onshore forwards. However, bankers are wary of taking positions amid heightened regulatory risks, four market participants said. The recent spate of measures, including limits on net open FX positions of banks in the deliverable rupee market, has led to a reversal of chunky arbitrage banks, unleashing heavy doll ...Read More >

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