Sbi $ Selling Pulls Back Rupee To 42.29 At Close

FOREX REPORT

Dollar selling by State Bank of India (SBI) two minutes before the official close of the market saw the rupee appreciate to close at 42.26-29 after having traded at an all time low of 42.44. The rupee had slipped by 45 paise on Tuesday to close at 42.22-25 after SBI, which had capped the rupee at 41.80 since the beginning of June, refrained from supporting it.

Yesterday, the market opened at 42.25-29 and then slid to trade at an all time low of 42.44. The SBI was selling dollars at levels of 42.40 - 42.32.

The RBI's reference rate was 42.33 per US dollar as against 42.15 on Tuesday and 41.80 on Monday, reflecting the decline in the value of rupee. Unlike the days before, forwards were not volatile yesterday, except for a 5- 7 paise intra-day movement. Yesterday, the one month premiums closed at (in per cent) 8.92 (8.50 on Tuesday), three month at 9.81 (9.92), six month at 9.66 (10.03), and one year at 9.59 (10.06).

Yesterday, the cash tom was 0.25-0.50 paise, cash spot was 0.50-1 paise and tom spot was 0.25-0.50 paise.Monthly premiums (in paise) closed at : 15-20 for June, 51-56 for July, 88-93 for August, 120-127 for September, 154-159 for October, 187-192 for November, 225-230 for December, 260-265 for January, 1999, 295-300 for February, 333-338 for March, 363-373 for April and 391-396 for May.