Re Holds Ground, Forwards Slide To 7.13%

FOREX REPORT

The rupee remained steady the dollar, moving in the narrow range of one paise in the inter-bank forex market yesterday. It closed at 35.85/86. The forward premiums also eased further across-the-board by one to three paise. The six-month annualised premium stood at 7.13 per cent.

Traders across banks described the spot market as dull, with barely routine trading activity being witnessed. The Indian currency opened at 35.85/86. Buying and selling activity was nominal at the most in the face of limited corporate demand. State Bank of India was not seen trading actively. Late in the evening, the Reserve Bank of India (RBI) entered the market, making moderate dollar purchases at 35.855. However, this did not move the markets and the rupee closed at the opening quotes. The tom-spot was quoting at 5 paise, the cash-tom was level/.5 paise and the cash-spot was -.5/.5 per cent.

The forward segment, too, was characterised by uneventful trading, causing the premiums to slip. Dealers said not much paying or receiving pressure was observed.

The monthly premiums in paise were level-3 for January, 15-18 for February, 39-42 for March, 64-67 for April, 84-87 for May, 110-113 for June, and 133-136 for July. The one year forward premiums were quoted at 250-280 paise.