MUMBAI, Jan 3 Reuters The Indian rupee39;s muted volatility is prompting banks and corporate treasuries to dabble more in the eurodollar, pounddollar and the dollaryen currency pairs in search for returns.

The dollarrupee has been held in a narrow range over several months, largely thanks to the Reserve Bank of India39;s RBI intervention on both sides. The rupee39;s volatility has plummeted to the lowest in more than a decade, with its trading range last year the narrowest since 2002.

It is nearly impossible right now to make money out of USDINR and that is fuelling more interest in crosses, a treasury official at a staterun bank said. The official is not authorized to speak to the media and did not want to be identified.

The volume of crosses of banks has jumped nearly 50 yearonyear, according to data collated from the RBI39;s Database on Indian Economy. Turnover of spot crosses, transactions which are settled in two business days, was 1.37 trillion between Jan. 1 and Nov. 24, compared with 920 billion in the same period in 2022.

Data after Nov. 24 has not been published.

The RBI does not provide the currency pairwise breakup of the volumes. The volumes on eurodollar pair are the largest followed by the pounddollar and the dollaryen, according to bankers.

The appeal of crosses, apart from their higher volatility, is that they respond to fundamentals and technicals, unlike the dollarrupee which is hard to analyse, the staterun bank official said.

For corporates,…