The rupee was largely range-bound against the dollar in the domestic forex markets yesterday. The highlight of the day's trading was, however, an across-the-board decline in the monthly premiums.
According to market sources, there was no reaction to the rumours about P V Narasimha Rao's fate, despite the crash in the Sensex. Resuming the day in the range of 35.62 and 35.63, the rupee saw no appreciable movement during the entire course of trading. It hovered around its opening quotes for the better part of the day, before closing in the same band. Forward rates on the dollar were marginally lower. Premiums for all months were down, compared with those ruling at the end of last week. The reason was a sustained sale of dollars by exporters. A number of banks were also reported to have received premiums by selling dollars forward. The fall in the premiums for March was particularly pronounced. It was quoting at 143 paise, after opening at 147 paise. A few deals were reported even at 142 paise.
The rates were quoting around 12/14 paise for October, 30/34 paise for November, 51/56 paise for December, 81/86 paise for January, 109/115 paise for February, 141/146 paise for March and 171/177 paise for April. The annualised rates on the six-month forward premia was at 8.5 per cent, as against 9 per cent at the end of last week.
In the international markets, the dollar remained fairly steady.