FOREX REPORT
The rupee remained steady against the dollar despite purchases made by the Reserve Bank of India (RBI) in both the spot and forward segments of the market. The spot rupee closed at 35.82.
The six-month annualised forward premium closed at 4.35 per cent and the one-year premium closed at 4.72 per cent.
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Forward premiums shot up in the morning by a couple of paise and later in the day after the cut in bank rates were announced. Premiums had started dropping and the exact extent of this will be known only after the markets open today . Initial reactions are that there will be a rush to cover positions should see forwards dropping by at least 5 to 6 paise on Thursday. The cash-tom and tom-spot were both .25/.75 paise, and the cash-spot was 0/.75 paise. Cash/spot was 0 /1.5.
The apex bank was buying passively in the spot market and showed interest in the greenback at 35.82 levels
Monthly premiums in paise for the year ahead were 0-0 for June, 9-12 for July, 20-23 for August, 32-35 for September, 47-50 for October, 62-65 for November, 76-79 for December, 91-94 for January, 105-108 for February, 120-123 for March, 136-139 for April, and 152-155 for May and 166-169 for June.
The overseas market was also quiet . The rupee weakened slightly at 59.59 against the pound, 20.78 against the mark, and 31.52 per 100 yen.