Rupee Shoots Up To 35.64, Forwards Easy

Large dollar sell-offs propelled the rupee to 35.64 against the dollar in the domestic forex markets yesterday. The premiums, too, were quoting below 10 per cent.

Resuming the day in the region of 35.67 to 35.69, the Indian currency rose to 35.64 due to sustained dollar sales in the morning. Dealers said the low opening rates caused the sell-off.

The first half hour was said to have been extremely volatile as banks tried to offload dollars in sizeable amounts. The closing rates for the day were in the range of 35.64 to 35.66.The resonance of the spot segment was felt even in the forward market where premiums slid to 9 per cent during the early hours. They later firmed up and closed higher at 9.8 per cent.

Monthly premiums were also quoting lower, with the rates for March tumbling to 163 paise. This, dealers said, was because many banks, including the SBI, were seen receiving. The late-session hardening was said to have occurred due to payments by SBI and Indian Overseas Bank. Monthly premia rates were 22/29 paise for October, 42/51 paise for November, 70/80 paise for December, 103/116 paise for January, 134/146 paise for February and 164/175 paise for March.

Internationally, the greenback was a touch lower against the mark and the yen after the FOMC meeting failed to announce the expected interest rate hike. The dollar-mark rates were quoting at 1.5090, while the dollar-yen rates declined to 110.20.ncs/bottom.inc"-->