According to forex dealers, the forward premium to be paid for booking dollars during the end of September has gone up to 3.4 per cent.
On the contrary, forward premiums on all other maturities from one month to one year are ranging between 1.90 per cent and 1.23 per cent respectively in that order.
Dealers feel that while the demand for forward dollars is increasing with the rising premium, demand for forward dollars of other maturities is virtually stagnant. The demand for booking September-end dollar is emerging from corporate as well as banks.
Dealers explained that the dollar demand during the period has risen on account of the redemption of the bonds.
While State Bank of India will arrange for the equivalent rupee liquidity to be swapped with the RBI for raising dollars, the RBI had booked forward dollar maturing around that period.
The market is of the view most of the dollars will be making way into the RBI kitty and then to SBI leaving a little for the market requirement.
