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USD/INR: Risk reversal snaps two-month fall in September

One-month risk reversal of the USD/INR, a measure of the spread between call and put prices, not only rises for the second consecutive day but also snaps the previous two monthly falls to print the options traders’ bullish bias so far during September, according to data source Reuters. 

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. That said, the monthly difference between them jumps to +0.125 versus the previous two readings of -0.050 and -0.450 respectively for July and August.

The moves could be linked to the USD/INR price performance as the Indian rupee (INR) pair takes the bids to 73.24, up 0.19% intraday while refreshing the daily top by the press time ahead of Tuesday’s European session.

As the options market signal favors the USD/INR bulls, the latest recovery of the pair could be important to watch.

Read: USD/INR Price News: Indian rupee braces for further gains inside bearish flag on 4H

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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