RBI’s sell-buy swaps slow rupee’s fall but push up forward premiums, making hedging costlier for foreign investors. Comprehensive market analysis and insights regarding this update. The Reserve Bank of India is engaged in dollar sell-buy swaps to stabilise the rupee's value. However, this has resulted in higher forward premiums, making it expensive for foreign investors to hedge. As a consequence, some foreign investments in rupee-denominated assets may decline. Additionally, companies are opting to borrow in rupees and exchange for dollars due to favorable local rates. Industry experts note that this development will have significant implications moving forward.