Sbi Dollar Buying Weakens Rupee

FOREX REPORT

The Rupee depreciated to 36.48-52 yesterday by the fag end of the day subsequent to State Bank of India (SBI) buying dollars in the market. The six-month forward premiums closed at 6.15 per cent and the one-year at 6.23 per cent. There was no RBI intervention during the day and the rupee ruled in the range of 36.45-47 to 36.49-52.

The apex banks reference rate was 36.46 as against 36.54 on Friday. It might be recalled that on Friday the Indian currency had appreciated by the close of the day against the dollar to close at 36.485-495 following a package announced by the central bank which included allowing proceeds of ECB and global depository receipt GDR to be sold forward.

Yesterday, the spot rupee opened at 36.48-52. On account of the festive mood in Mumbai, trading was laclustere. Forex dealers described the trading activity in the forex market as dull except for the spurt subsequent to the SBI entering the market. Far forward premiums went up by around eight paise during the course of the day. Monthly premiums (in paise) closed at 7-10 for September, 26-29 for October, 44-47 for November, 64-67 for December, 84-87 for January, 99-102 for February, 119-122 for March, 139-142 for April, 159-162 for May, 178-181 for June, 197-200 for July, and 236-241 for August. The rupee appreciated against other currencies. It closed at 58.45 against the pound, 20.72 against the mark, and 30.27 per 100 yen.