MUMBAI: The premia in the foreign currency advance market are seen increasing with the demand for sell-buy swaps going up gradually in the past few days. Sources in the money market guess that the central bank could have buy $5 billion through such swap deal in the past few days.

Consequently, the premium on the one-month agreement has risen from 0.93% to 1.36%. Likewise, the yield on the 12-month agreement has gone up from 0.98% to 1.39% within the course of this week. For corporate, however, this style hints at higher prevarication costs. The rupee, which was trading above the 40-mark against the greenback for relatively some time now, manage to breach the 39-mark in September, after the US Federal Reserve declare a 50 basis point cut in interest rates.

Refer : http://economictimes.indiatimes.com/News/Economy/Finance/Demand_for_sell-buy_swaps_lifts_forward_premia/articleshow/2458860.cms