The rupee moved in a narrow range vis-a-vis the dollar yesterday.
After opening at 35.74-75, the Indian currency strengthened by one paise to close at 35.73-74.
The lack of significant movement was attributed to a switch in the pattern of trade as compared with the rest of the week, with supply of dollars exceeding demand.
Much of the supply came from the corporate sector and nationalised banks, while the buyers were primarily foreign banks.
The cash-spot quoted at a relatively higher range of 1.75 to 3.75 per cent.
The Reserve Bank of India was quite active in the market yesterday in its usual attempt to prevent any undue appreciation of the rupee.
It was seen buying the greenback at Rs 35.735.
Due to the relatively good liquidity conditions, premiums levels witnessed a decline. Thus, the market saw the exporting community going in for export cover as the premiums were attractive to them.
The annualised six-month forward premium yesterday worked out to 6.49 per cent, which was 35 basis-points below that of Thursday.
Monthly premiums were 4-6 paise for November, 16-19 paise for December, 37-40 paise for January, 58-61 paise for February, 86-89 paise for March, 107-110 paise for April, and 128-131 paise for May.
