Rupee Weakens, Forwards Ease Marginally

The forward segment, the premiums continued to ease with the six-month annualised finally closing at 7.4 per cent.

The spot rupee opened at 35.875-885. The State Bank of India (SBI) entered the market to purchase the American unit in two rounds-first at 35.915 and then it was seen bidding at 35.92 to 35.93 levels. This saw the greenback touch a high of 35.93. Supplies continued to remain good.

The Reserve Bank of India (RBI) was not seen trading. However, its reference rate was 35.89. The tom-spot was at 2.5/3.5 paise and cash-spot at 2.5/3.5 paise. This was high on account of the week-end carry forward.

In the forward market, premiums first eased, then strengthened, then eased again as receiving pressure exceeded paying pressure.

Monthly premiums in paise were 15-18 for March, 41-44 for April, 60-63 for May, 80-83 for June, 105-108 for July, 126-129 for August and 147-150 for September. The one-year premiums were 255-275 paise.

Overseas, the dollar strengthened against the mark. However, its movements were mixed against the pound. But, it has remained steady against the yen as Japanese exporters continued to sell dollars. The rupee closed weaker at 58.40 against the pound, 21.20 against the mark and 21.78 per 100 yen.