Rupee Moves Up Against $, Forwards Slide

FOREX REPORT

The rupee appreciated against the dollar closing at the levels of 35.83-84 in the absence of intervention from the Reserve Bank of India.

The apex banks absence in the forward market saw premiums slip sharply.This was combined with an appreciation of the rupee in the spot market. The six- month forward premium closed to 6.02 levels.

The spot market was largely described as quiet with barely nominal activity. Dealers reported that the RBI did not enter the market at all.

However, its reference rate was marginally higher at 35.86 as compared with 35.87 yesterday. The cash-tom was -.5/.25 paise, the tom-spot was -.5/.25 paise and the cash-spot was -.25/.75 paise.

The forward segment was also inactive with most of the interest being expressed by exporters who came in to receive the premium which slipped by three to eleven paise for various months.

Monthly premiums in paise were 2-4 for April, 17-20 for May, 37-40 for June, 59-62 for July, 79-82 for August, 99-102 for September, and 119-122 for October. One year premiums were 239-249 paise.

Overseas, the market was once again bullish on the dollar. The rupee too strengthened against major currencies, closing at 58.15 against the pound, 20.86 against the mark, and 28.31 per 100 yen.