Rupee one-month forward premium rises sharply to 37.50 versus its previous close of 32.25, as importers rush to book their short-term payables on the back of a sudden spike in the spot pair.
USD/INR spot jumps to 52.19/20 versus its previous close of 51.85/86, headed for a second day of losses after hitting a six-month low early on Friday.
"There is sudden import covering seen in the near-end, tracking today's upmove in USD/INR. But medium term sentiment is still dollar negative, so mid and far-end tenors are not seeing much paying," a senior dealer with a state-run bank said.
The three-month forward rate steadies at 92 while the one-year rate up marginally, at 313 versus previous close of 311.50.
