MUMBAI (April 7): 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 dollar selling in the onshore ​forward market and pushing dollar/rupee forward rates lower. The ​April maturity dollar-rupee future last quoted at around 93.4850, well above the onshore ​forward rate of around 93.25. This spread would typically woo bankers, who are keeping away as they nurse losses on arbitrage trades.

Source: The Edge Markets April 07, 2026 10:28 UTC