The spot rupee traded in a 47.9450-47.9750 range today amidst good dollar supplies from exporters. Forward premiums dipped on the back of easy call money rates and comfortable liquidity in the banking system.

Said a dealer with a private sector bank: "There were good supplies of dollars from exporters today and that helped the Indian currency strengthen initially. However, state-run banks later bought dollars from the market, pushing the Indian unit down."

A dealer with a foreign bank said: "The Reserve Bank of India has been buying dollars over the past three weeks through the public sector banks. And, today was no exception." Dealers, however, said state-run banks bought less dollars as compared with Thursday.

Forward premiums fell at the shorter end today with the money market remaining flush with liquidity. The six-month premium closed at 6.32 per cent as compared with Thursday's closing of 6.38 per cent. The one-year premium remained unchanged at Thursday's level of 6.22 per cent.

Said a dealer with a nationalised bank: "Premiums generally move in tandem with the change in interest rate differentials in India and abroad. In India, interest rates are continuing to go down, while they have taken a slight upturn in the United States. This pushed down premiums today."

The rupee's movement will continue to be dictated by dollar-buying by public sector banks. Said a dealer with a private sector bank: "Good dollar supplies have been coming to the system. However, it is the buying by public sector banks that has kept the Indian currency close to the 48 mark. Where the rupee will close tomorrow will depend upon how much dollars the banks buy from the market."

Forward premiums are likely to soften further on the back of ample liquidity in the banking system.