Rupee Hits 39.85, Rebounds To 39.55

FOREX REPORT

The rupee dipped to a low of 39.76-85 against the dollar but later recovered to close at 39.45-55. Forward premiums in percentage terms moved up. The one month closed at 12.3 per cent, the three month at 11.41 per cent, the six month at 10.26 per cent, and the 12 month closed at 8.44 per cent.

Spot rupee opened at 39.39-42. It slipped to 39.76-85 in the morning itself as corporates were aggressively buying dollars. However, there was news of some GDR proceeds which saw the rupee recover to around 39.55 levels.

The RBI took the market by surprise yesterday by intervening in the forwards segment. The apex bank sold forward for January and July. The premiums which had climbed up by about 10 to 15 paise during the day, recovered partially. Medium term premiums, however, closed firmer by eight paise.

Monthly premiums (in paise) for the year ahead closed at : Dec - 21-23; Jan - 53-55; Feb 90-92; Mar - 126-130; Apr - 160-165; May - 185-190; Jun - 208-213; Jul - 234-239; Aug - 255-260; Sep - 275-280; Oct - 295-303; Nov - 315-320; and Dec - 340-345.

Cash-tom was at 2/3 paise, tom-spot at .5/1.25 paise, and cash-spot at 3/4 paise.

In the crosses, rupee closed at 65.72 against the British pound, 22.41 against the German mark, and 30.47 per 100 Japanese yen.