Rupee Steady, Closes Around 39.22

FOREX REPORT

The rupee remained steady against the dollar closing at 39.2250-2275. Forward premiums softened despite sell-buy swap activity by the State Bank of India (SBI). One month premiums closed at 7.12 per cent, three months at 7.22 per cent, six months at 7.34 per cent, and 12 months at 7.82 per cent.

The spot market remained very quiet. Trading remained low key with barely nominal activity reported on account of yesterday being the first day of the new calendar year.

With the RBI being closed, there was no cash trading. Tom-spot closed at 2.5-3 paise.

In the forward market forward dollar premiums continued to soften despite sell-buy swaps by the SBI. SBI was reportedly reversing swap transactions undertaken for purposes of investing in their nostro accounts overseas. Corporate demand was also very low key on account of the new year. Premiums dipped by eight to ten paise for the near term and 18 to 22 paise for the mid to far term.

Monthly premiums (in paise) for the year ahead closed at : Jan- 17-19; Feb- 41-43; Mar- 63-66; Apr- 90-95; May- 112-116; June- 133-140; July- 159-164; Aug - 186-193; Sept- 215-222; Oct - 240-250; Nov - 269-276 and Dec 293-303.

With the overseas currency markets closed for the new year, there was no trade in the cross currencies.