Spot In Staid Terrain, Forwards Languid

The spot rupee ended the day at 47.1225/13, unchanged from its morning opening level due to little activity. Premiums, on the back of a stable spot rupee, also ended unchanged.

The spot rupee opened the day at 47.1225/13 and most deals were executed around 47.12-47.13.

"The spot rupee kept a narrow range through the day due to lack of interest. It has been this way for a while now as interest levels have been waning. This should continue for another 10-15 days," said a dealer with a new private sector bank.

The demand was little and was mainly from public sector banks. "Public sector banks were purchasing but not in large lots," he added. The supply for the greenback came from the regular channels.

The Reserve Bank of India's (RBI) reference rate was Rs 47.13 against Rs 47.12 on Thursday. During the next week the spot rupee should move in the 47.10-47.15 range, unlikely to breach any new lows.

Forward premiums remained dull and rock steady today with the 6-month annualised premium ending the day at 4.75 per cent while the one-year annualised premium was at 4.82 per cent.

"Premiums have also seen practically no activity due to the lack of direction, interest and any major market moving factors. As the spot and call rates have been stable, so premiums remained stagnant," said a foreign exchange dealer.

"Premiums could also be bid from Monday on account of the Federal Open Market Committee (FOMC) meet which is on August 20-21. Since a 25 basis points rate cut is expected, premiums could see an upward revision of about 10 basis points. But if the Fed cut is 50 basis points, the premiums could rise disproportionately in the coming week," said a dealer with a foreign bank.

Premiums should remain stable otherwise, in the coming week.