FX

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

Articles You May Like

European major indices close mostly higher
Dollar Rally Not Making Progress as Dull Trading Continues
Steel price slides towards monthly low on China’s covid, heat wave concerns
This was a good week for inflation numbers, but whether it can last is the big question
USDCAD retest its 100 day moving average. Finds sellers on the test.

Leave a Reply

Your email address will not be published.