Rupee Slips A Bit, Forwards Steady

FOREX REPORT

The rupee slipped down marginally against the dollar, closing at 36.185-195. Dealers said that there was some demand in the morning from a foreign bank.

Forward dollar premiums remained steady for the near to medium term but weakened for the far term following steady exporter selling. The six-month premium closed at 5.17 per cent, slightly tighter than Monday's close of 5.11 per cent. The one-year, however, fell by four paise and consequently closed softer at 5.39 per cent. Spot rupee opened at 36.17-18. In the morning, a foreign bank was reportedly buying dollars. This pushed the Indian currency down. Otherwise, there was no major player in the market. The RBI also kept away. Cash-tom and tom-spot were at 0/.5 paise, and cash-spot was at 0/.75 paise.

Forward premiums continued to soften falling by one to two for the medium term and four paise for the far term. While exporters are selling to get the best levels, importers are not expressing much buying interest.

Monthly premiums (in paise) closed at 5-8 for October, 17-20 for November, 33-36 for December, 51-54 for January, 66-69 for February, 85-88 for March, 101-104 for April, 118-121 for May, 135-138 for June, 151-154 for July, 167-170 for August, and 183-186 for September.

In the crosses, rupee closed at 58.75 against the pound, 20.70 against the mark, and 29.68 per 100 yen.