There was demand for dollar in the morning which led to a fall in the rupee. The currency witnessed an intra-day high at 45.88 against the dollar. The spot rupee closed roughly at the previous day's level. The day's lowest quote was recorded at 45.79.
Dealers said that the rupee reached the 45.88-45.89 level in afternoon trades. Later in the day, there was dollar inflows from foreign institutional investors, banks and exporters and the rupee recovered to its closing level of 45.78-45.80.
The six-month annualised forward premium closed lower at 5.19 per cent compared with 5.30 per cent the previous day. The trend in the forward market was downward and there was paying pressure in far forwards. The near-term market also witnessed a downward trend.
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A dealer with a private sector bank said, "The rupee was seen stable despite the fact that it touched the 45.88-mark. The rupee did not fall much yesterday and the spot rupee was traded in a comfortable range."
A dealer with a foreign bank said, "The market witnessed stability yesterday and the rupee is expected to open around 45.80-45.82 levels today."
"There were no specific categories of buyers but the trend is still downwards," he added.