Rupee Declines On Sbi Dollar Buying

FOREX REPORT

The rupee closed against the dollar at 39.52-55. Thursdays close was at 39.48-50. The Indian currency touched an intra-day low of 39.59 against the greenback. One-month premiums closed at 10.54 per cent yesterday, three-month at 11.33 per cent, six-month at 11.71 per cent, and one-year at 11.35 per cent.

The rupee opened at 39.46-49 against the dollar and then slipped to 39.59 in the wake of dollar buying by State bank of India (SBI). During the course of the coming week, foreign exchange dealers believe that, the rupee could slip further and could touch a low of 39.70. The trend will mainly depend on the formation of the government at the centre.Premiums have steadily declined because of ample rupee funds in the banking system. Banks have been receiving and if they decided to take profits then premiums could move up.

Yesterday cash tom was 1.25-1.75 paise, cash spot 1.50-2 paise and tom spot 0.25-0.50 paise.Monthly premiums (in paise) closed at: 19-21 for March, 60-65 for April, 97-100 for May, 137-141 for June, 177-180 for July, 217-222 for August, 253-258 for September, 288-293 for October, 325-330 for November, 360-365 for December, 395-400 for January 1999 and 430-435 for February 1999.In the crosses, rupee closed at 64.71 against the pound, 21.58 against the mark, and 31.04 per 100 yen.