Rupee Back Form The Brink

The spot rupee pulled back smartly towards closing hours from an intra day low of 46.07 to close 45.79 after it came to be known that the central bank was making pointed enquiries pertaining to the bank statements of exporters. Dealers said the RBI governor's statement will lead to temporary appreciation in the currency and the spot rupee will be range bound between 45.60 to 45.80. "Despite the two-way movements in the spot market today , much depends on the opening rate on Monday," a forex broker said. "The second phase of hike in the CRR and refinance rates, which is to come into effect from tomorrow is not expected to change the market much," he added. The forwards tracked the path of the spot rupee. Premiums crashed by 10 to 15 paise, especially those of far forwards. The six months annualised forward premium was 4.51 per cent. "Trading of forwards was weak and range bound due to nervousness in the spot rupee," said a dealer in a private sector bank.