But later in the day some foreign banks sold dollars possibly received from foreign funds, which eased supplies and caused the rupee to recover. Some exporter inflows were also reported by traders. Traders added that the rupee could have ended stronger but its rise was tempered by some state-owned banks which bought to meet corporate demand. Dollar forwards inched higher on Friday as banks took profits, prompted by the premiums had hit a temporary bottom. Several banks in recent sessions transacted buy-sell swaps, sending forwards lower as talked gained momentum of a third rate cut by the central bank.
Forwards reflect interest rate differentials between the United States and India.
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