RBI’s $10-billion forex swap gets thrice the bids

Mumbai: The Reserve Bank of India’s (RBI) 3-year dollar-rupee buy-sell swap saw strong demand on Tuesday, with participants bidding nearly three times the notified amount. The $10- billion swap attracted bids worth $29.9 billion, with its cutoff premium at 728 paise.

The cutoff premium has increased 127 paise from the last time the central bank conducted a 3-year swap. The previous $10-billion, 3-year swap conducted in February 2025 attracted a cut of premium of 655 paise, RBI data showed.

Higher premium means the cost of buying dollars has gone up. RBI is buying dollars at higher premium than it did last time.

“Premiums have gone up because the rupee has been under that much pressure as compared to last year. This time last year, the currency was trading in the 85 to 86 handle,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.