Market sentiment improved rapidly following the huge FII inflow, dealers said. ICICI Bank has sold about 16.5 per cent stake amounting to 101.4 million shares for $272.4 million to seven foreign investors. An affiliate of Canadas Lombard Insurance and funds managed by the Government of Singapore bought the bulk of the stake. The rupee saw its intra-day high at 48.3750 with 48.3950 being the intra-day low.
Meanwhile, the Reserve Bank of India (RBI) fixed its reference rate for dollar at 48.38 (48.39) while it fixed the reference rate for the euro at 47.25 (47.34).
With the rupees bull run, forward premiums eased marginally. Forwards were also buoyed by softer call money rates. The benchmark six-month annualised premium closed a tad lower at 4.08 per cent, while the one-year annualised premium closed lower at 4.10 per cent. In morning trades, premiums remained slightly tight, but later softened a bit following the rupees rally.