The spot rupee today ended lower at 47.1375 against the dollar compared with yesterday's close of 47.1225, while forward premiums ended a shade higher as sentiment remained bullish.
The rupee opened at 47.1250 and kept a range of 47.1250-47.1425. "There was absolutely no activity in the market. All tradings were of regular corporate demand with little speculation," said a dealer with a new private sector bank.
There was buying interest from some public sector banks, but supplies continued to be sporadic. According to a dealer with a public sector bank, the demand and supply matched one another. A lot of deals were done at the 47.1450/ 47.1475 level, he said.
"There was only a marginal movement in the spot rupee today. Some inflows are expected soon with proceeds of an ADS expected to enter the market," another dealer with a private sector bank said.
The Reserve Bank of India (RBI)'s reference rate was 47.13, unchanged from yesterday's rate. Tomorrow the spot rupee is likely to stick to the 47.13-47.17 band.
Forward premiums, too, remained dull throughout the day to end a shade higher. The six-month annualised premium ended at 4.77 per cent as against 4.80 per cent yesterday, while the one-year annualised premium wound up at 4.75 per cent unchanged from yesterday's close.
"Premiums are also witnessing complacency. They opened at yesterday's close and closed marginally up from Monday's close," said a foreign exchange dealer.
"Tomorrow premiums would remain rangebound unless the spot rupee moves, which seems unlikely save for some month-end demands. Since the local currency and the call money market are stable, premiums should stay rangebound," a dealer with a new private sector bank said.
Premiums should be ranged tomorrow and track the spot rupee.
