Rupee Depreciates, Forwards Steady

FOREX REPORT

The rupee depreciated against the dollar following strong dollar purchases by the Reserve Bank of India (RBI) in the spot market. The Rupee closed at 35.77-78, stronger than last Friday's close of 35.745-755. Forward premiums remained steady with the six month annualised closing at 4.97 per cent.

The spot Rupee opened at 35.745-755. The RBI entered the market at around 11:00 am. It purchased around $50-100 million upto around 1:30 pm after which it withdrew from the market. Following the RBI's exit, the Rupee regained some strength and climbed to the close levels.

With both London and New York remaining closed, there was no trading in the cash segment. The tom-spot closed at .25/.75 paise.

The forward segment remained quiet with supply of forward dollars marginally exceeding demand. There was no intervention by the RBI in the spot market. The paying pressure has been gradually picking up and catching up with receiving pressure. This has seen the six-month annualised premium inch up towards the 5 per cent mark.

Monthly premiums in paise were 0-2 for March, 9-12 for June, 24-26 for July, 38-41 for August, 55-58 for September, 72-75 for October, and 86-89 for November. One year premiums were 167-172 paise.Overseas, the markets remained steady. The Rupee closed at 58.66 against the pound, 21.16 against the mark, and 30.77 per 100 yen.