One-month risk reversals on the Indian Rupee (INR), a gauge of calls to puts, jump to the highest since February 26 while rising for the third consecutive day, indicating investors are holding bullish bets for the INR.
This goes against the USD/INR price moves that marked the strongest run-up in three weeks the previous day, currently depressed around 72.65 ahead of Friday’s European session.
Risk reversals flash the +0.282 level, favoring USD/INR bulls by the press time, according to data provided by Reuters. The positive reading indicates call options are drawing higher premium (option price) than put or bearish bets.
Although the options markets are bearish on the USD/INR, the pair’s sustained break of the key resistance line from February 26, currently around 72.50, suggests further upside of the quote.
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