Dealers in money market believe that the Reserve Bank of India is likely to hike interest rates in its forthcoming mid-quarter review of the policy on March 17 to tame inflation. This is reflected in the action of a few foreign banks who bought forward dollars today anticipating a rate hike in the forthcoming policy meet.
Fears of a rate hike have been bolstered after crude oil price, which forms a sizable part of India's imports, crossed USD 100 per barrel mark recently. As a result, forward dollar/rupee premiums were slightly up today. Dealers expect the one-year forward premium to move in 5.99-6.08% band today.Meanwhile, dollar/rupee non-deliverable forwards (NDF) rates slipped today as traders sold the dollar noting its weakness against most global currencies, including the rupee. Dealers feel the one-month NDF rates are expected to remain in 45.1000-45.20000 per dollar range today. 
