The Indian rupee reversed all intraday gains to close steady on Tuesday as traders pared some long-dollar positions after a central bank deputy said more steps would be taken, if needed, to bring stability to the domestic forex market. The rupee closed at 52.87/88 to the dollar, little changed from Monday's level of 52.88/90, after touching the day's low of 53.09 earlier.
The offshore non-deliverable forwards (NDFs) indicated further weakness, with the one-month rupee NDFs at around 53.34. The one-month onshore forward dollar premium were at 38.25 points, up from 37.5 on Monday, while the three-month premium was at 100.5 from 98. The one-year premium was at 272 from 267.25. In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange ended at 53.0375, and at 53.0425 on both the MCX-SX and the United Stock Exchange. Total volume was at $3.73 billion.