Rupee Steady, Forwards Slide To 7.59 Per Cent

FOREX REPORT

The rupee was range-bound against the dollar in the inter-bank forex market yesterday. It closed a 35.845/855, almost two paise stronger over Mondays close. The forward premiums came off in the face of mounting receiving pressure. The six-month annualised rates closed at 7.59 per cent, down 89 basis points compared with the previous days figure of 8.48.

The Indian currency opened at 35.85-86, but with lacklustre dollar demand, it gained ground towards close. Although the Reserve Bank of India (RBI) did make esquires with several banks, none of them reported any sale to the central bank. The SBI was not noticed actively trading either.The cash-tom was -0.25/0.5 paise, the tom spot was -0.25/0.25 paise, and the cash-spot was -0.25/1 paise. Forward premiums across-the-board eased as profit taking and paying interest of importers tapered off. Over the past few days, it was ruling over eight per cent on account of increased paying pressure.

On Monday, the rates slipped as exporters entered the forward market to receive the premium. Lack of activity in this segment yesterday, saw the annualised come down to 7.59 per cent.The monthly premiums in paise were quoting between 6-9 for January, 24-27 for February, 48-51 for March, 75-78 for April, 98-101 for May, 121-124 for June, and 145-148 for July. The one-year forward premium was 285-305 paise.