FOREX REPORT
The rupee closed at 39.48-49 against Tuesdays close of 39.48-51. Forward premiums went up by 50-120 basis points across the board.
One-month premiums closed at 10.37 per cent (8.85 per cent on Tuesday), three-month at 10.97 per cent (9.85 per cent), six-month at 10.87 per cent (10.40 per cent), and one-year at 10.58 per cent (10.39 per cent).
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Yesterday cash tom was 0.25-0.50 paise, cash spot 3-3.5 paise and tom spot 2.50-3 paise.
Premiums went up as the State Bank of India (SBI), which has been receiving in the forwards, was not in the market. It was only buying in the spot market.
Another reason could be high call rate which went up to 11 per cent. But this explanation need not hold true because there were only stray deals at these levels and the weighted average call rate of STCI and Mibor were lower at 9.05 per cent and 9.18 per cent respectively.
Monthly premiums (in paise) closed at : 13-15 for March, 51-55 for April, 85-90 for May, 124-129 for June, 155-160 for July, 193-198 for August, 229-234 for September, 265-270 for October, 300-305 for November, 335-340 for December, 370-375 for January 1999 and 400-405 for February 1999.
In the crosses, the Indian currency closed at 64.81 against the pound, 21.53 against the mark, and 30.59 per 100 yen.