Rupee Stays Range-Bound Against $
FOREX REPORT
The rupee remained range-bound against the dollar, closing at 38.95-98 after having dipped to 39.06.
Forward dollar premiums continued to move northward strengthening across maturities as overnight rates in the call money market remained firm. The six month premium closed at 7.94 per cent and the 12 month at 7.14 per cent.
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Spot rupee opened at 38.90-92. In the morning it slipped beyond 39 on some corporate buying. Buying interest stabilised and for some time the rupee hovered at 39.01. But purchases picked up later on expectations of the SBI entering the market which pushed the rupee down to 39.06. However, SBI sold in the market causing the rupee to recover.
Cash-tom was at 0/.25 paise, tom-spot at .25/.75 paise, and cash-spot at .25/1 paise.
Forward premiums firmed up along with the money market overnight rates.
Market players say that not only exporters but also banks are unwilling to sell forward dollars as there is a possibility of rates firming up further.
Monthly premiums (in paise) for the year ahead closed at : December - 18-21; January - 45-48; February 70-73; March - 100-103; April - 125-128; May - 144-147; June - 165-168; July 188-191; August - 202-212; September - 230-233; October- 250-253; November - 268-271; and December - 288-291.
In crosses, the rupee closed at 63.87 against British pound, 21.71 against the German mark, and 29.91 per 100 Japanese yen.