Rupee Stable, $ Premiums Decline

FOREX REPORT

The rupee held in a three-paise range against the dollar in brisk two-way trade, foreign exchange dealers said. It closed at 42.55-56 against 42.56-57 on Tuesday.

Forward dollar premiums eased substantially as month-end demand decreased, they said. Premiums closed at: 1-month - 5.08 per cent (5.71 per cent on Tuesday); 3-month - 5.99 per cent (6.62 per cent); 6-month - 7.45 per cent (7.83 per cent); 9-month - 8.10 per cent (8.41 per cent); 12-month - 8.41 per cent (8.62 per cent).

Spot rupee opened at 42.565-575. It held around those levels for most of the day as demand was met by good supplies.

The State Bank of India (SBI) mopped up surplus supplies in the market. It further sold dollars towards close causing the rupee to shed a couple of paise.

Cash-tom was quoted at .25/.375 paise, tom-spot at .375/.5 paise, and cash-spot at .75/1 paise. Forward dollar premiums eased in the absence of corporate interest.

Besides, the SBI and some other banks received (through swap sales) in the market. Premiums eased by 7-10 paise across maturities.

Premiums (in paise) closed at: December - 13-15; January - 34-36; February - 58-60; March - 89-92; April - 122-125; May - 152 -155; June - 183-186; July - 217-225; August - 251-255; September - 284-288; October - 318-322; November - 350-354.

In the crosses, the rupee closed at 70.47 against the pound, 25.38 against the mark, and 35.17 per 100 yen.