One-month risk reversals on USD/INR, a gauge of calls to puts, rose to their highest levels since August 2013 on Wednesday, indicating investors are adding bets to position for furher weakness in the Indian Rupee (INR).
Risk reversals jumped to a seven-year high of 3.475 on Wednesday, having bottomed out near 0.20 at the end of December 2019. The surge represents a rise in demand or implied volatility premium for call options (bullish bets).
USD/INR closed at 75.84 on Monday, having hit a record low of 76.3760 on March 24. The pair was trading near 71.60 at the end of February.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.