Rupee Weak Against Dollar, Forward Up

FOREX REPORT

The rupee weakened slightly against the dollar closing at 35.76-77 in the inter-bank forex market yesterday. The six-month annualised premium moved up slightly following substantial intervention by the Reserve Bank of India (RBI) in the forward market. The premium closed at 4.58 per cent.

The spot rupee opened at 35.745-755. However, the State Bank of India (SBI) entered the market and made some good dollar purchases. This made the rupee appreciate. Moreover, the RBI intervention in the forward market had a sentimental impact leading to further weakening of the rupee.

The cash-tom was -.5/.5 paise, the tom-spot was -.25/.25 paise and the cash-spot was -.75/.75 paise. The forward segment first slipped in the morning with good receiving pressure. However, intervention by the RBI propped up the premiums and they closed substantially higher than Thursdays close of 4.22 per cent. Monthly premiums in paise were -.5-0 for April, 4-6 for May, 15-18 for June, 32-35 for July, 50-53 for August, 65-68 for September and 79-82 for October. One-year premiums were 161-171 paise.

Overseas, the dollar continued to hold ground against other currencies. The rupee, on account of its relatively weaker position against the dollar, closed lower against other 0major currencies. It closed 58.05 against the pound, 20.84 against the mark and 28.4 per 100 yen.