Foreign investors reduce India rate-hike bets, boosting swaps trading

Foreign investors are scaling back expectations of further rate hikes by the RBI, triggering record volumes in 5-year interest rate swaps. This shift reflects growing confidence in disinflation and a potential pivot to rate cuts. Trading activity in the derivatives market surged, with $2.3 billion in notional value traded in a single day. The move signals strong sentiment shift among global funds.

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