Rupee Calm At 37.45, Forwards Soften

FOREX REPORT

The rupee closed at 37.45-47 against the dollar in a fairly calm market yesterday. The Reserve Bank sold a token amount of $40 million to keep the local currency from slipping below 37.5.

Forward premiums softened -- the six month premium closed at 6.6 per cent, and 12 month at 6.65 per cent.

Spot rupee opened at 37.39-42. The SBI bought dollars in several rounds. Each time SBIs purchases threatened to push the rupee towards 37.5, Reserve Bank of India intervened to support the rupee. The panic which characterised the market on Tuesday, was absent yesterday. The central banks reference rate was 37.43.

Cash-tom and tom-spot closed at .25/.5 paise each, and cash-spot closed at .5/1 paise.

Forward premiums recovered on the back of a steady spot rate.

Exporters are selling their dollars, and importers which had bought forward dollars when premiums are high are now cancelling these contracts.

Forward premiums closed lower by one to eleven paise across the board.

Monthly premiums (in paise) for the year ahead closed at November: 2-5, Dec: 22-25, Jan: 46-49, Feb: 65-68, Mar: 88-91, Apr: 109-114, May: 129-132, Jun: 149-154, Jul: 169-174, Aug: 188-193, Sep: 207-212, Oct: 225-230, Nov: 245-250.

In the crosses, the rupee closed marginally stronger at 63.14 against the British pound, 21.64 against the German mark, and 29.39 per 100 Japanese yen.