Rupee Stays Steady, Forwards Take A Dip

FOREX REPORT

The spot rupee remained steady against the dollar on account of passive buying by the State Bank of India (SBI) and the Reserve Bank of India (RBI) which kept the rupee from appreciation. It closed at 35.81-82. The forward premiums dipped on account of active receiving interest. The six-month annualised premium closed at 4.05 per cent and the one year premium closed at 4.09 per cent.

The cash-tom was -.5/0 paise, tom-spot was 0/.25 paise and the cash-spot was -.25/.25 paise. The spot rupee opened at 35.81-82. Purchases by the RBI and SBI saw the rupee dip one paise to touch an intra-day low of 35.82-83. However, after these institutions stopped their purchases, the rupee recovered to close levels.

In the forward market, the premiums dipped further on account of strong receiving pressure. There was some interest in the far forwards as corporates have been swapping forex loans into rupees. Monthly premiums in paise were 0-2 for June, 7-10 for July, 17-20 for August, 7-10 for July, 17-20 for August, 31-34 for September, 46-49 for October, 50-63 for November, 75-78 for December, 89-92 for January, 104-107 for February, 120-123 for March, 136-139 for April, and 151-154 for May.

Overseas, the market remained steady during the day, awaiting the release of US trade data which was to be released in the evening. The rupee closed at 58.50 against the pound, 26.60 against the mark, and 31.5 per 100 yen.