Heavy dollar buying by public sector banks helped the rupee to close little changed at 48.91/92 against the dollar today. Forward premiums fell further today on the back of easy liquidity condition in the market.
The Indian currency today opened at 48.94/95 against the dollar. The Indian currency strengthened as there was supply of dollars on account of the remittances from abroad. The highest deal done was at 48.9050. However, the state-run banks started buying dollars at 48.91/92 and helped the rupee to close at that level. Forex dealers said that it seemed that these banks were acting on behalf of the Reserve Bank of India (RBI).
In the forward premiums market, the six-month annualised premium closed at 5.42 per cent today as against yesterday's closing of 5.45 per cent while one-year premium closed at 5.39 per cent as against its previous close of 5.40 per cent. Dealers said that even though the gilt yields rose marginally, the comfortable liquidity condition helped the premium rates to dip.
More From This Section
In the coming week, the rupee is likely to remain in the 48.90-48.95 range against the dollar.
Forex dealers said though supply of dollars is likely to be ample the central bank will mop up the most of it. Forward premiums are likely to fall further during the week due to easy liquidity condition. According to the dealers, the six-month annualised premium should remain around 5.30-5.40 per cent during the week. The one-year premium is likely to remain around 5.25-5.35 per cent.