Rbi Steadies Re, Forward Dips To 6.48%

FOREX REPORT

The rupee remained steady against the dollar closing at the opening levels of 35.86-87 after some amount of intervention from the Reserve Bank of India.

The central banks moves in the forward market however, did not have the same impact on the forward rupee-dollar parity. The six-month forward premium slipped to 6.48% levels.

The spot market was largely described as quiet with barely nominal activity. Dealers reported that the Reserve Bank entered the market and picked up a small quantum of dollars at 35.87 levels.

This was also its reference rate. Besides the RBI, there were no other major player in the market.

Despite today being a holiday, the cash-tom and cash-spot segments were inactive. The cash-tom closed at 0/.25, the tom-spot at -.25/.5 and the cash-spot at -.25/.75 paise.

The forward premiums segment was also inactive with most of the interest being expressed by exporters who came in to receive the premium which is showing a steady tendency to fall.

Premiums fell sharply, by four to eight paise across the board.

Monthly premiums in paise were 4-7 for April, 21-24 for May, 42-45 for June, 64-67 for July, 87-90 for August, 108-111 for September, and 128-131 for October. One year premiums were 239-249 paise.

Overseas, the market was once again bullish on the dollar and the American unit touched a four year high against the mark crossing 125.47.

The rupee also strengthened against major currencies, closing at 58.27 against the pound, 21.03 against the mark, and 28.59 per 100 yen.