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Mumbai, Sept. 24

The rupee on Wednesday was volatile in a market that saw thin volumes on account of the strike by nationalised banks. The demand for dollars in the spot market, by participants who took advantage of the arbitrage in the overseas non-deliverable forwards (NDF) market, pulled the rupee down to the day’s low of 46.10, said dealers. The rupee opened at 45.75/77 and closed at 45.95/96, down 50 paise from the previous close of 45.44/45. A forex dealer with a private bank s aid that Reserve Bank of India was seen selling at levels of 46.10. “Now the market feels that the RBI will intervene if the rupee crosses 46 levels,” he said. Demand from oil companies was less, as their transactions are carried out mostly by public sector banks, which were on strike, the dealer added.

A dealer with a large PSU bank said the bank only covered its customer transactions and stayed away from the regular trading in the forex market. In the forward premia market, six-month closed at 1.62 per cent (1.6 per cent) and the 12-month closed at 1.33 per cent (1.34 per cent).

— Our Bureau

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