Rupee 160911 Rupee extends gains The rupee rose 0.6% to 47.27 against the dollar as against 47.55.

The unit was choppy in first half with slight gains and no knee jerk movement in reaction to RBI rate hike. The central bank hiked the LAF rate by 25 bps and raised concerns over high inflation and over downside risk to growth. RBI also persisted with its anti-inflationary stance. Notably, the unit edged up in post-noon despite choppy stocks and modest gains in USD against majors and some Asian peers. It breached the intraday resistance near 47.40 and edged up to a 3-day high of 47.22. Traders cited some banks cutting long dollar positions ahead of weekend. Forward premia edged up tracking lower USDINR quotes and higher OIS rates. Rate futures segment was barren. OIS rates edged up tracking higher local bond yield and broadly improved global risk appetite. Futures September USDINR contract slipped 0.65% to 47.3500 as against 47.6575. The contract mirrored movement in USDINR through most part of the day. It moved in a wide range holding 47.3000-47.6625 through the day. Meanwhile, RBI hiked the LAF rate by 25 bps and raised concerns over high inflation and over downside risk to growth. It also persisted with its anti-inflationary stance. Open interest increased by around half-apercent whereas volume slipped 15.22% over the day. September EURINR contract snapped a 3-day streak of gains and slipped 0.59% over the day. The contract had edged up in early deals as concerns over European banking crisis eased. However, the contract slipped in post-noon tracking slide in spot EURUSD on the back of profit booking. Investors awaited news from a meeting of EU finance ministers in Poland. Open interest ended flat while volume in the EURINR contract rose after declining for the previous three sessions. September GBPINR contract snapped a 6-day wining streak while September JPYINR contract erased gains of the previous two sessions to hit a 3-day low. GBPINR and JPYINR contract saw a slide in open interest and rise in volume over the day. Options The total traded volume in the most active calls and puts was 1,085,376 contracts (19.09%) while the total market open interest was 1,674,562 contracts (-15.18%). September 46.75, 47, 47.25, 47.5 and 47.75 strike calls and puts were among the most active contracts. Premia of 46.75 and 47 strike calls fell 29.5 paise and 29.25 paise, respectively. The 47.5 and 47.75 strike put rose 9 paise and 13 paise over the day.

The 47.25 and 47.75 strike calls saw a rise in open interest and decline in volume. Further, the 47 and 47.5 strike puts saw a surge in open interest and volume. Put/Call ratio of September 46.75, 47, 47.25, 47.5 and 47.75 strike calls and puts stood at 1.81. Volatility of calls and puts off all the above strikes slipped.