FOREX REPORT
The rupee strengthened against the dollar following a spurt in supply in the American currency yesterday. The Indian currency closed at 35.89-90.
The forward premiums, on the other hand, remained soft with expectations of receiving pressure. The six-month annualised premium closed at 6.78 per cent. The spot market witnessed moderate demand for the greenback.
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The rupee opened at 35.885-895 and remained steady till noon when a financial institution sold $50 million in one lot. This saw the rupee dip by one paise.
Then, just two minutes before the days close, the State Bank of India made a nominal dollar purchase at 35.90. The RBIs reference rate for the dollar was 35.90.
The forwards segment saw routine activity. A leading financial institution gave indications of wanting to do a buy-sell forward contract buying for February and selling for September. The FIs bidding had a downward impact on the premiums.
The monthly premiums in paise were 1-3 for February, 17-20 for March, 41-44 for April, 62-65 for May, 82-85 for June, 106-109 for July, and 126-129 for August. The one-year premiums were 248-268 paise.
In the international market, the dollar continued its rally.
The rupee closed at 58.58 against the pound, 21.29 against the mark, and 29.12 per 100 yen.