Rupee Declines To Close At 38.92-94

FOREX REPORT

The rupee slipped vis-a-vis the dollar to end at 38.92-94 as against Thursday's close of 38.88-89.

Forward premiums went up with the three-month premiums closing at 16.75 per cent.

There was some hectic corporate covering. Since banks were already long on premiums the additional demand implied that forwards went up. One-month premiums closed at 12.54 per cent (as against 11.83 per cent on Thursday), three-month at 16.75 per cent (15.18 per cent), six-month at 15.95 per cent (14.64 per cent), and one-year at 14.28 per cent (13.40 per cent).

The spot rupee was steady opening at 38.90-92 and then slipped to 38.93-95. Forex dealers point out that the Indian currency is losing ground at a very slow pace and do not rule out the possibility of it slipping below 39. RBIs reference rate was 38.87. Yesterday cash tom was 1-1.5 paise, cash spot 1.25-1.75 paise and tom spot closed at 0.25-0.50 paise.

Monthly premiums (in paise) closed at : 1-2 for February, 50-52 for March, 109-112 for April, 174-178 for May, 223-238 for June, 273-278 for July, 315-320 for August, 356-361 for September, 399-404 for October, 440-445 for November, 480-485 for December, 520-525 for January 1999 and 560-565 for February 1999.

In the crosses, rupee closed at 63.72 against the pound, 21.40 against the mark, and 30.61 per 100 yen.