MUMBAI, July 9 (Reuters) – The jump in open interest on rupee/dollar currency futures on the Singapore Exchange indicates that investors are shifting their arbitrage and hedging activity to the city-state after the Indian central bank imposed restrictions on local currency futures, traders said.
WHY IT’S IMPORTANT
The Reserve Bank of India has been seeking to increase the volume of rupee derivatives traded in the local market relative to offshore, which helps them have more control over the currency.
Source: REUTER
