Rupee Strengthens, Forwards Stay Easy
FOREX REPORT
The rupee appreciated against the dollar in the inter-bank forex market yesterday as supplies of the greenback outstripped demand. It closed at 35.815-825.
The forward premiums, on the other hand, continued to remain soft even though the Reserve Bank of India (RBI) entered the market to buy outright May. The six-month annualised closed at 4.73 per cent.
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The spot market witnessed only nominal trading. The rupee opened at 35.825-835, but some activity in the morning saw it slip to 35.83-84. Dealers attributed this to the central bank's intervention in the forward market.
However, the Indian currency soon regained lost ground and strengthened to the closing levels. The cash-tom was .25/.25 paise, the tom-spot was 0/.5 paise and cash-spot was .25/.75 paise. The forward market saw some intervention by the Reserve Bank, which bought outright May dollars amounting to around $30 million. However, despite the RBI's purchases, the sentiment remained soft on the forward dollar, which remained at more or less the same levels as the previous day.
Monthly premiums in paise were 2-4 for May, 10-13 for June, 23-26 for July, 39-42 for August, 56-59 for September, 73-76 for October, and 85-88 for November. One-year premiums were 158-163 paise.
Overseas, the rupee closed at 58.99 against the pound, 21.3 against the mark and 30.39 per 100 yen.