Rupee Hardens To Close At 38.73-78
FOREX REPORT
The rupee closed strongly at 38.73-78 to the dollar as against Tuesdays close of 39.00-10. The rupee opened in the region of 39.00-10 and then appreciated to 39.71-75 by late afternoon.
The cash tom was 7-9 paise, tom spot 8-10 paise and cash spot 15-18 paise.
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Premiums rocketed upwards by around 30-70 paise on account of covering interest on part of corporates.
The one-month premium was around 41.70 per cent, three-month around 29.13 per cent and the 6-month at 18.18 per cent.
Some dealers also pointed out another reason. Banks were doing sell-buy transactions, given that call money rates are on the higher side.
They were selling dollars and generating rupees and then reversing the transactions.
Yesterday, the monthly premiums (in paise) were: January - 45-50; February -160-170; March - 230-250; April - 280-310; May - 335-355; June - 375-395, July - 425-445; August - 450-480; September - 490-570; October - 520-550; November - 555-585; and December - 590-610, Jan uary- 630-660.
On Tuesday, the monthly premiums (in paise) were: Jan - 40-45; Feb - 120-140; Mar - 180-200; Apr - 225-245; May - 265-285; Jun - 300-320, Jul - 345-365; Aug - 385-405; Sep - 410-440; Oct - 465-485; Nov - 500-520; and Dec - 540-560 and Jan - 580-610.
In the crosses, rupee closed at 62.80 against British pound, 21.12 against the German mark, and 30.35 per 100 Japanese yen.