The rupee opened at 45.90/93 and stayed in a narrow band between 45.92 and 45.94 on moderate corporate dollar demand. Hectic dollar interest of the last couple of days on fears of short-dollar supplies on account of the RIB redemption seems to have ebbed. The RBI reportedly sold $200-300 million on Thursday.
The recovery in the domestic stock markets and continued foreign fund investment despite the recent volatility, also improved sentiment. In the forwards, premiums took comfort from the spot-rupees recovery and fell across-the-board on fresh receiving interest. The six-month annualised premium closed lower at 1.13 per cent as compared to 1.24 per cent on Thursday. The market seems confident of the fact that the RBI will step in if there is huge volatility. Thursday showed that the central bank will step in, a dealer with forex brokerage said, adding: However, there are still huge short-dollar positions in the market.