Rupee Closes Stronger, Forwards Slide

FOREX REPORT

The rupee closed stronger against the dollar at 35.83-84.

Premiums on the forward dollar,however, eased across the board with the six-month annualised forward premium slipping below 6 per cent to 5.9 per cent at the close of trading.

The spot market was quiet. The rupee opened at 35.84-85.

There was a good supply of the greenback from regular sources.

Demand, however, was not forthcoming on account of the rupees recent tendency to appreciate.

The Reserve Bank of India was not noticed in the market.

However, as per its press release, its reference rate was 35.84

The cash-tom was -.5/.25, the tom-spot was -.25/1 and the cash-spot was -.25/.75 paise.

Forward premiums continued to go decline in the face of good receiving pressure and Reserve Banks absence in the market.

Monthly premiums in paise were 3-5 for April, 20-23 for May, 40-43 for June, 62-65 for July, 83-86 for August, 103-106 for September, and 122-126 for October.

The one-year premiums were at 239-249 paise.

Overseas, the dollar remained strong against other major currencies.

The Indian currency closed at 58.06 against the pound, 20.89 against the mark, and 28.50 per 100 yen.