USD/INR futures open interest rises; forward premiums flat

USD/INR futures open interest rises; forward premiums flat

MUMBAI, Aug 23 (Reuters) - USD/INR near-term futures see an increase in open interest (OI) ahead of the August contract expiry.

** USD/INR NSE September contract NIRU2 OI climbs $125 million or 7.6% to $1.75 billion. August contract NIRQ2 OI up slightly to $3.18 billion ahead of expiry this Friday.

** Build-up in OI suggests an increase in short positions on the contract as rupee holds above 80.

** Spot USD/INR INR=D3 marginally higher at 79.85 against 79.8675 on Monday despite weak risk sentiment, dollar's strength versus major peers.

** Expectations of Reserve Bank of India intervention capping USD/INR upside.

** Rupee one-year forward implied yield INRANPRM1Y=RR at 3.03%, barely changed from Monday. July rupee forward premiums INRJULM= at 2.25 rupees.

** Premiums unchanged following comments by RBI Governor Shaktikanta Das comments that inflation had likely peaked.
Reporting by Nimesh Vora