Re Appreciates Against $, Forwards Soften

FOREX REPORT

The spot rupee appreciated marginally against the dollar in the inter-bank forex market yesterday. It closed at 35.785-795. The forward premiums softened slightly with the six-month annualised closing at 4.52 per cent. Most of the activity was in the inter-bank segment and not in the merchant segment.

The spot market saw quiet trading. The rupee opened at 35.79-80. Dollar selling by corporates saw it strengthen to 35.77-78 levels. Some dollar buying by the Reserve Bank of India (RBI) at the close of trading, saw the rupee weaken slightly to close at 35.785-795.

The cash-tom was 0/1 paise, the tom-spot was 0/.5 paise and the cash-spot was .5/1.5 paise.

In the forward segment, the premiums continued to soften as receiving interest continued to outstrip paying interest. Dealers said exporters are trying to cash-in on the existing premiums as they are not expected to rise further. Monthly premiums in paise were 5-7 for June, 16-19 for July, 30-33 for August, 46-49 for September, 64-67 for October, 78-81 for November, 93-96 for December, 109-114 for January, 125-130 for February, 145-150 for March, 164-169 for April, and 180-189 for May.

Overseas, the dollar remained steady against other major currencies. The rupee, on account of its strong position of the dollar, also held its ground against other major currencies. It closed at 58.60 against the pound, 21.02 against the mark, and 30.71 per 100 yen.