Rupee Closes At 35.82-83, Forwards Crash

FOREX REPORT

Premiums on the forward dollar crashed as the market took a dim view on the dollar. The six-month dollar sold at a premium of 3.6 per cent, and the one year at 4.1 per cent. In the spot segment, good selling kept the rupee steady despite some dollar demand. The spot rupee closed at 35.82-83.

The rupee opened at 35.815-825. The State Bank of India (SBI) bought around $80 million in two tranches at 35.82 and 35.83 which was the intra-day high.

However, there was sufficient dollar supply, and the rupee held ground.

The tom-spot was 1.5/2.5 paise, and the cash-spot was 1.5/3 paise on account of the upcoming long weekend.

The forward segment was active as major players including Reliance Industries and SBI sold forward - RIL for July, 1998, and SBI for various maturities between March 1998 and June 1998. Premiums crashed by 8 to 10 paise.

Monthly premiums in paise were 6-9 for July, 14-17 for August, 25-28 for September, 38-41 for October, 49-52 for November, 61-64 for December, 74-77 for January, 86-89 for February, 99-102 for March, 113-116 for April, 128-131 for May, and 143-146 for June.

Overseas, the dollar remained strong as data indicated that the US economy had recorded its highest ever GDP of 5.9 per cent.

The rupee, closed steady against other major currencies at 59.65 against the pound, 20.67 against the mark and 31.34 per 100 yen.