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The USD/INR three-month 25 delta risk reversals (INR3MRR) are currently trading at 0.512 in favor of the call options. That value, however, is the lowest since Aug. 9, meaning the implied volatility premium (or demand) for calls is at the lowest in over three months.

Notably, risk reversals have dropped sharply in the last six days from 0.758 to 0.512.

The drop in demand for calls is hardly surprising as the ongoing sell-off in oil could end up pushing (INR higher) USD/INR below the psychological level of 70.00.