The Indian rupee touched a one-week high on Wednesday as robust dollar inflows more than compensated for negative local stocks. The partially convertible rupee ended at 45.085/095 per dollar, after rising to 45.07, its strongest since December 14. It had ended at 45.225/235 per dollar on Tuesday. The rupee moved in a wide band of 45.0700-45.2600 owing to an illiquid market, with most foreign banks away at the year end.
The one-year forward dollar premium ended up at 252 basis points, after touching 252.75 basis points, its highest since November 11 and compared with Tuesday's close of 241.50 basis points. The index of the dollar against six major currencies was down 0.35 percent at 80.437 points at close of local market. One-month offshore non-deliverable forward contracts ended at 45.31, weaker than the onshore spot rate.