MARKET TALK: USD/INR Fwd Premiums Down; 1-Year Support At 3.00

USD/INR forward premiums are slightly lower, tracking the spot INR higher. Still the downside is limited as cash crunch persists in the banking system, says a dealer with a foreign bank. The one-year forward premiums are at 3.05 vs 3.07 late Wednesday in Asia. "All eyes are on the severe cash crunch and how long it will persist. If the RBI decides not to cut banks' CRR, we may see the premiums going sharply up," the dealer says. He tips one-year premiums to stay in a 3.00-3.30 band in the near term.(