Rupee Steady, Forward Premiums Easy

FOREX REPORT

The rupee remained steady against the dollar in the inter-bank forex market yesterday closing at 35.88-89.

However, the American unit was more expensive yesterday as compared with Wednesdays close of 35.86-865. The forward segment continued to ease with the six-month annualised closing at 7.3 per cent.

The spot rupee opened at 35.88-89. Supplies were good and exceeded the demand. The State Bank of India (SBI) entered the market at around 1200 hours, picking up whatever banks offered. The Reserve Bank of India was not seen trading. However, its reference rate was 35.89.

The cash-tom jumped to level/.5 paise, the tom-spot to 2.5/3.5 paise and cash-spot to 2.5/3.5 paise. This was on account of the week-end carry forward.

In the forwards market, the premiums continued to ease as there was some receiving pressure. Monthly premiums in paise were 16-19 for March, 41-44 for April, 61-64 for May, 81-84 for June, 107-110 for July, 126-129 for August and 147-150 for September. The one-year premiums were 255-285 paise.

Overseas, the dollar strengthened against the mark and pound after hints from the Federal Reserve of a possible hike in American interest rates in March or May.

The rupee closed weaker at 59.07 against the pound, 21.41 against the mark and 29.81 per 100 yen.