USD LIBOR 3 months and USD Libor 6 month

Forex Hedging | 10 min Read
Best Hedging Strategy For Importers, import port

  • USD Libor is at an almost all-time low due to the sharp interest rate cuts from the Fed on the back of the COVID-19 scare.
  • Current Fed futures indicating no change in the Fed fund rate by  2023.
  • The economic shock of COVID might not be temporary – the possibility of a jump in Libor is negligible.
  • Fed is not keen on negative rates – unless forced by a massive market crash – possible if a second infection wave comes back in a few months.
  • In all, expect that Libor would stay depressed for long.
  • The risk of keeping positions unhedged is minimal as the risk of a sharp rise in Libor is almost non-existent at this stage.

LIBOR Rates 

USD Libor 3 months 0.21838
USD Libor 6 months 0.25750

 IRS Levels

2Y 0.2350%
3Y 0.2729%
5Y 0.4092%

Against 3ML

 To get the USDINR View regular updates or to setup a 121 discussion Register Here. Some of India’s largest companies use our USDINR views. You can also Email us for further questions and clarifications

Sign up for Complimentary Access to Webinars, Trainings and Reports