The RBI on Monday intervened in the forward market and conducted swaps to cool forward rates which have been heading northwards. Dealers said the RBI intervened for a small amount for January maturities. This is the second consecutive trading day RBI intervened to bring down the forward rates.

Forwards reacted and fell across-the-board as a result of this intervention. "The one-month annualised premia is now at 11.25 per cent--about 300 basis points lower than Friday's close," a dealer in a bank said. Six-month forwards closed at 9.30 per cent--lower by 120 basis points over Friday's close of 10.50 per cent.

According to dealers, there was a lot of receiving pressure as some exporters were covering. This apart, banks were also squaring their position.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.