USD/INR: Call bias strongest since 2013

One-month risk reversals on USD/INR, a gauge of calls to puts, rose to their highest levels since August 2013 on Wednesday, indicating investors are adding bets to position for furher weakness in the Indian Rupee (INR). 

Risk reversals jumped to a seven-year high of 3.475 on Wednesday, having bottomed out near 0.20 at the end of December 2019. The surge represents a rise in demand or implied volatility premium for call options (bullish bets). 

USD/INR closed at 75.84 on Monday, having hit a record low of 76.3760 on March 24. The pair was trading near 71.60 at the end of February.