Rupee Steady, Forwards Dip In Listless Trading

FOREX REPORT

The rupee notched up modest gains against the dollar in the inter-bank forex market yesterday. After moving in a narrow range of 1 paise, it closed at 35.845/85. The forward premiums also dipped by three to seven paise to close at 7.19 per cent.

Traders across banks described the spot market as dull, with the rupee remaining almost steady. The Indian currency opened at 35.85/86. Buying and selling activity was nominal with limited corporate demand. The supply positions with banks, however, remained comfortable. The State Bank of India, noted to be the bank whose dollar purchases causes the greenback to appreciate, was not seen trading actively. The Reserve Bank of India also was not present in the market.

The tom-spot was -.25/.25 paise. New York, being closed yesterday, the cash-tom and cash-spot were not quoted.

The forward segment of the forex market was also characterised by inactivity. This caused the premiums to slip across the board. There was not much receiving pressure or paying pressure, said a dealer with a private bank.

The monthly premiums in paise were quoting between level-3 for January, 15-18 for February, 41-44 for March, 67-70 for April, 87-90 for May, 111-114 for June, and 134-137 for July. The one-year forward premium was quoted in the range of 280 to 295 paise.