Dollar Supply, Exim News Lift Rupee

FOREX REPORT

The spot rupee strengthened against the dollar yesterday on good supplies and late evening news of export credit being cut to nine per cent, dealers said. It closed at 42.45-46 against 42.50-52 on Tuesday.

Forward rupee notched substantial gains on corporate sales, they added.

Dollar premiums closed at 3.49 per cent for one-month (4.35 per cent on Monday), 5.22 per cent for three-month (5.89 per cent), 6.78 per cent for six-month (7.41 per cent), and 8.11 per cent for 12-month (8.50 per cent).

Dealers said the rupee firmed in early trade after opening at 42.48-50 on positive sentiment on expectations of the State Bank of India's (SBI) Resurgent India Bonds scheme mopping up over $3-3.5 million .

 

The RBI's mid-day reference rate was 42.47 compared with 42.55 on Tuesday. Cash-tom and tom-spot were 0/.25 paise each, while cash-spot was 0/.5 paise.

The forward rupee continued its upward trend on exporter selling, accentuated by news of the proposed cut in export credit.

Dollar premiums crashed by four to 17 paise across maturities

Premiums (in paise) closed at: August - 7-10; September - 24-28; October - 47-51; November - 76-81; December - 105-110; January - 135-140; February - 165-170; March - 200-205; April - 235-240; May - 267-274; June - 300-307; July- 333-340.

In the crosses, the rupee closed at 69.57 against the pound, 23.85 against the mark, and 29.51 per 100 yen.