Rupee Closes Steady, Forwards Easy

FOREX REPORT

The rupee remained steady against the dollar in a dull inter-bank forex market yesterday. It closed at 35.86-87. The forward premiums remained easy with the six-month annualised closing at 6.81 per cent.

The rupee opened at 35.88-90 levels. In the morning, a lot of banks who had gone short on Tuesday after selling to the Reserve Bank of India (RBI), sought to cover their positions. However, after that the demand tapered off. In the afternoon, the RBI entered the market bidding for the dollar at 35.8625. However, its purchases were nominal. Its reference rate for the dollar was 35.87.

The cash-tom was 0/0, the tom-spot -.25/.75 and the cash-spot was -.25/.75 paise.

The forward premiums were easy. The near end in particular came off as banks sought to take advantage of the long weekend (Friday, Saturday, Sunday). The far end remained fairly steady.

The monthly premiums in paise were 5-8 for March, 27-30 for April, 46-49 for May, 65-68 for June, 88-91 for July, 111-114 for August, and 132-135 for September. One-year premiums were 240-260 paise.

Overseas, the dollar continued to remain strong against the major currencies.

It was particularly strong against the mark in lieu of the pessimistic sentiment prevailing about the formation of the European Union. The rupee closed at 57.81 against the pound, 20.95 against the mark and 29.51 per 100 yen.