Sbi Buying Weakens Re, Forwards Up

FOREX REPORT

The rupee dipped against the dollar to a low of 39.07 but recovered to close at 38.90-95. The local currency weakened on the back of dollar buying by the State Bank of India (SBI) and other banks for most of the day.

Forward dollar premiums strengthened across maturities as overnight rates in the call money market firmed up.

The six-month premium closed at 7.77 per cent and the 12 month at 7.11 per cent.

Spot rupee opened at 38.80-85. Early morning, it strengthened to 38.77-79 but this was very temporary.

Soon after, corporate demand picked up and the rupee started slipping. By 2:30 pm, it was as low as 39.07.

However, late evening buying by the State Bank of India caused it to recover.

Cash-tom and tom-spot quoted at .25/.75 paise each, and cash-spot at 0.25/1.25 paise.

Forward premiums firmed up along with the money market overnight rates.

Premiums were up by 2 to nine paise for various maturities.

Monthly premiums (in paise) for the year ahead closed at: the following rates December - 20-23; January - 48-51; February 72-75; March 99-102;

April - 122-125; May - 143-148; June - 153-158; Jul 184-189; August - 205-210; September - 225-230; October - 245-250; November - 265-270; and December - 287-292.

In the crosses,the rupee strengthened to close at 63.19 against British pound, 21.77 against the German mark, and 29.8 per 100 aginst the Japanese yen.