Anil Kumar Bansali, head of finance at Finrex Treasury Advisors, said that the Bank of India's latest liquidity return measures are driving up overnight financing costs. At the same time, importers took advantage of the strengthening of the rupee to buy forward dollars, and the forward rise in the dollar against the Indian rupee rose sharply. The three-month forward rise of the dollar against the rupee rose 30 basis points to 5.67%, the highest level since April 6. The weighted average lending rate rose to 5.40%, a record high of more than three months. Bansali said that the Bank of India's latest foreign exchange policy has reduced participation in the banking market, and forward market liquidity tends to dry up. He said that exporters will not sell forward dollars for the time being and will wait for the exchange rate of the dollar to rise above 96 against the rupee.

Anil Kumar Bansali, head of finance at Finrex Treasury Advisors, said that the Bank of India's latest liquidity return measures are driving up overnight financing costs. At the same time, importers took advantage of the strengthening of the rupee to buy forward dollars, and the forward rise in the dollar against the Indian rupee rose sharply. The three-month forward rise of the dollar against the rupee rose 30 basis points to 5.67%, the highest level since April 6. The weighted average lending rate rose to 5.40%, a record high of more than three months. Bansali said that the Bank of India's latest foreign exchange policy has reduced participation in the banking market, and forward market liquidity tends to dry up. He said that exporters will not sell forward dollars for the time being and will wait for the exchange rate of the dollar to rise above 96 against the rupee.