Indian Firms Seize 3.7 Billion Dollar NDF Arbitrage Gap
Indian firms traded 3.7 billion dollars in NDFs on March 30 to capture arbitrage gaps. This followed RBI curbs on banks that pushed the rupee to record lows.
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Corporate activity in the non-deliverable forwards (NDF) market in India experienced a significant surge, reaching over $3.7 billion on March 30. This volume, which is roughly four times the typical daily average, indicates a concerted effort by firms to capture arbitrage opportunities triggered by banks unwinding their positions following new regulatory constraints.
