Spot Rupee Sheds 10 Paise

The six-month annulised premium went up by a fair margin. Forward premiums rose about 50 basis points from 4.56 per cent on Tuesday to 5.08 per cent yesterday as the market witnessed forward bookings by importers.

The deadline for liquidating 50 per cent of the outstanding exchange earners foreign currency (EEFC) account scheme expired yesterday. The total infusion was around $500 million, dealers said. However, the exact quantum of inflow is still not known and the RBI officials said it would be known on Friday after compilation of the data from authorised dealers.

There was continuos buying and selling yesterday although demand surpassed supply position. The RBI reportedly sold dollars through public sector banks. The rupee fell gradually and spot buying by corporates and foreign institutional investors constituted a major chunk of demand. The supply could not match the demand, pulling the rupee down by 10 paise.

A dealer with a private sector bank stated that the rupee opened near yesterday's closing, but by mid-afternoon it went up to 45.78 and even reached the 45.80 mark.

The rupee was volatile after it crossed the 45.70 mark and despite the expectations on fresh supply of dollar on account of liquidation of EEFC account outstandings, the rupee lost ground.