The spot rupee marginally declined to close at 46.73 Friday on good dollar supplies from foreign banks and exporters against 46.725 on Thursday.
Forward premiums closed marginally higher on account of a tight liquidity situation in the money market. The six-month annualised premium closed around 4.22-4.25 per cent (4.13 per cent).
The spot rupee opened at 46.73/74 against the dollar. The currency, which touched an intra-day low of 46.755, was traded in a 46.72-46.75 range during the day.
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Dollar supplies matched demand and pushed the rupee to recover to its intra-day high of 46.72 against the greenback. Dealers said that trading was dull because of the range-bound movement of the spot rupee.
"Dollar supplies from foreign banks and exporters matched the market demand rendering the spot fairly stable. The spot weakened to the 46.75/76 level but was immediately countered with good supplies and hence recovered to 46.72. There was a positive sentiment due to the India Millennium Deposit (IMD) issue of the State Bank of India (SBI)," said a dealer with a private sector bank.
"The trading session was well balanced today as good supplies matched dollar demand. We expect the spot to be range-bound between 46.72 and 46.76 on Monday," said a dealer with a public sector bank.
The Reserve Bank of India's (RBI) reference rate was 46.74 today against 46.73 on Thursday.
Forward premiums witnessed another volatile day as the inter-bank call money rates tightened. Premiums for near-term forwards moved up by around two-three paise, while far forwards moved up by one paise. The one-year annualised premiums closed at 4.19 per cent against 4.14 per cent on Thursday.
"Premiums tracked call rates and closed higher than the previous day. We expect the six-month annualised premium to be in the 4-4.15 per cent on Monday," said a dealer with a foreign bank.