Rupee Up 26 Paise, Forwards Static

FOREX REPORT

The rupee staged a 26 paise recovery against the dollar yesterday, closing at 38.92-94. The sentiment in the market has changed following the success of the Mahanagar Telephone Nigam global depository receipt issue.

Forward dollar premiums did not show much movement - six month premium closed at 7.09 per cent and 12 month at 6.66 per cent.

Spot rupee opened at 39.19-20. In the first half of the day, SBI and other banks were selling dollars. Rupee recovered to a high of 38.84 by the afternoon.

However, late evening, it was pulled down to the close levels by some buying by SBI and other banks.

Cash-tom quoted at .5/1 paise, tom-spot at 1.75/2.75 paise, and cash-spot at 2/3 paise.

Forward premiums softened in paise terms for various maturities.

Corporates were not covering heavily yesterday.

However, market players expect the premiums to harden as the RBI has announced a hike in the fixed repos rate to 6.5 per cent from 5 per cent on Wednesday.

Monthly premiums (in paise) for the year ahead closed a : December - 20-25; January - 46-51; February 66-71; March - 90-95; April - 111-116; May - 129-134; June-149-154; July 169-174; August - 189-194; September - 210-215; October - 230-235; November - 252-255; and December - 272-277.

In the crosses, rupee closed at 65.17 against British pound, 21.95 against the German mark, and 30.08 per 100 Japanese yen.