MARKET TALK: USD/INR Fwd Premiums Flat; One-Year In 2.75-2.90 Band

USD/INR forward premiums are now nearly unchanged after a bout of paying early in the session, says a dealer with a state-run bank. One-year forward premiums are at 2.81 vs 2.82 late Tuesday. The dealer advises receiving forwards on rallies on the bet that the spot INR will appreciate once results for elections at five states assemblies are announced. "After the election results, the government can focus on reforms, which will be rupee-positive", he says. The dealer tips one-year forward premiums in a 2.75-2.90 short-term range. The spot pair continues to trade in a tight band, and is now at 49.32, down from 49.36 late Tuesday in Asia. Local bond and spot currency markets will be closed Thursday for Mumbai city council polls.