India’s Currency Market Roiled as Banks Protect Dollar Assets
- State-run banks are staying away from receiving dollars
- Forward premium on dollar-rupee doubles over the past week
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India’s foreign-exchange market is getting roiled after the government told state-run banks to protect their dollar deposits due to a tax dispute.
Banks were told by the authorities to protect their dollar deposits on concern that U.K.-based Cairn Energy Plc will move to seize India’s offshore assets after winning an arbitration ruling, according to people with knowledge of the matter.