Good Dollar Supply Lifts Rupee To 35.76

The rupee yesterday appreciated against the dollar, closing at 35.76-765, on account of continued good supply in the inter-bank forex market.Forward premiums continued to remain soft, with the six-month annualised closing at 4.59 per cent.

The spot rupee opened at 35.78-79. The market remained very quiet with little action being witnessed from buyers. Prospects of a stronger rupee in the short-term led to active unloading of dollars. The Reserve Bank of India (RBI) was not noticed in the spot market.

The cash-tom and tom-spot were -.25/.25 paise and the cash-spot was -.5/.5 paise.

The forward market remained soft and premiums continued to ease. In the afternoon, the RBI entered the market buying spot June to September outright, albeit in small amounts.

Monthly premiums in paise were 0-.5 for April, 6-9 for May, 17-20 for June, 34-37 for July, 52-55 for August, 68-71 for September and 85-88 for October. One-year premiums were quoting at 155-165 paise.

Overseas, the dollar weakened against the mark following apprehensions that the EMU may not take place on schedule. Moreover, expectations of intervention by the Bank of Japan saw the greenback weaken against the yen too. The rupee, despite its stronger position against the dollar, slipped slightly with respect to other currencies, closing at 58.35 against the pound, 20.97 against the mark, and 28.5 per 100 yen.