FOREX REPORT
The rupee remained steady against the dollar on account of nominal demand and limited RBI intervention lending support to the dollar in the inter-bank forex market yesterday. It closed at 35.87-89.
Forward premiums firmed up after central bank intervention and the six month annualised closed at 7.32 per cent.
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The spot rupee opened at 35.87-88. Corporate demand remained nominal with only a few major corporates bidding for the dollar.SBI was also bidding for the dollar but is reported not to have made any purchases. The RBI intervention kept the dollar steady. The apex bank bought the dollar at 35.88.
The cash-tom was .25/1.25, the tom-spot was 0/.5 paise and the cash-spot was .25/1.75 paise. Forward premiums softened during the day as exporters continued to sell their forward remittances. It gained after the RBI entered the market. The apex bank purchased outright for May onwards. The monthly premiums in paise were 3-6 for March, 25-28 for April, 47-50 for May, 67-70 for June, 87-90 for July, 108-111 for August and 128-131 for September. Overseas, the market remained bullish against the dollar and the American unit strengthened against other major currencies. Sections of the market are anticipating a hike in US interest rates by .25 per cent. The rupee closed steady, as compared to the previous day, closing at 57.12 against the pound, 21.24 against the mark, and 29.04 per 100 yen.