Forward premium on falls

MUMBAI, March 16: The imminent BJP-led government at the centre has strengthened the forward premium on dollar at the inter-bank foreign exchange market here on Monday.

Dealers expect the rupee to stabilise without showing any volatility. 8220;It reflects the initial euphoria over the fact that political uncertainty is coming to an end,8221; said a dealer.

The forward premium fell by 10 to 15 paise across the board on signs of a stable government emerging at the centre. Six-month forwards closed stronger at 10.45 per cent up from Thursday8217;s close of 10.90 per cent.