Rupee Appreciates, Forwards Strengthen

FOREX REPORT

The rupee appreciated marginally against the dollar in the inter-bank forex market yesterday. It closed at 35.845-855.

In the forwards segment, the premiums strenghtened across the board with the six-month annualised premium closing at 7.53 per cent.

The rupee opened at 35.89-90 and remained at these levels for the first half of the day under normal trading activity.

Neither the State Bank of India (SBI) nor the RBI were seen trading. However, in the latter half of the day, some corporates were reported to be selling the greenback. This caused the rupee to strenghten to the closing levels. The cash-tom and tom-spot were 0/.5. and the cash-spot was -.25/+.5. The forwards market witnessed relatively more activity as the monthly premiums, particularly the far-term premiums, carried on their upward march. Due to the mounting paying pressure, the monthly premiums rose by two to seven paise.

The paying pressure has been mounting from various fronts. First, banks have been swapping their FCNR funds for rupees, second, banks and corporates are indulging in profit-taking, and lastly, importers are booking to meet their payment requirements.

The monthly premiums in paise were 8-10 for January, 27-29 for February, 54-57 for March, 80-83 for April, 101-104 for May, 124-127 for June and 147-150 for July.