Dollar Premiums Soften On Liquidity

FOREX REPORT

The rupee recovered to end Monday off an intra-day low of 42.55 following late noon dollar supplies, foreign exchange dealers said. It closed at 42.51-52 against 42.49-50 on Friday.

The forward rupee also appreciated sharply in easy liquidity conditions, they added. Dollar premiums closed at: one-month - six per cent (7.34 per cent on Friday); three-month - 6.87 per cent (7.46 per cent); six-month - 7.69 per cent (7.97 per cent); nine-month - 8.24 per cent (8.45 per cent); 12-month - 8.52 per cent (8.75 per cent).

Spot rupee opened at 42.51-53. It weakened on inter-bank demand because of short-covering, dealers said. But, corporate dollar supplies in late noon trade caused the rupee to recover to 42.51. The State Bank of India (SBI) was not active in the market.

 

Cash-tom was 0/.5 paise, tom-spot 2.5/4 paise, and cash spot 2.5/4.5 paise. The Reserve Bank of India (RBI) mid-day reference rate was 42.53 against 42.51 on Thursday. Dollar premiums softened on easy liquidity conditions in the money market as the second tranche of funds from the Resurgent India Bonds scheme entered the system. Besides, corporate month-end demand had eased.

Premiums (in paise) closed at: October - 16-19; November - 41-44; December - 66-70; January - 94-99; February - 123-128; March - 154-159; April - 187-192; May - 220-225; June - 253-258; July - 286-291; August - 319-324; September - 352-359. In the crosses, the rupee closed at 72.35 against the pound, 25.26 against the mark, and 31.17 per 100 yen.