Re Appreciates A Shade To 38.72-76

FOREX REPORT

The rupee appreciated against the dollar to close at 38.72-76 as against yesterdays close of 38.73-77.

With the objective of sucking liquidity out of the money markets, the Reserve Bank of India conducted sell buy swaps yesterday. Last week, the central bank had conducted buy sell swaps to ease liquidity in the money market.

Subsequent to last weeks intervention call rates had declined and forward premiums followed suit.

The decision by RBI to transact sell buy swaps saw rupees being sucked out. With call expected to harden marginally, forward premiums increased.

Yesterday, one month premium closed at 20.26 per cent, three month at 20.87 per cent and six month at 16.80 per cent. In contrast, on Tuesday forward premiums had declined, closing at 14.31 per cent for one month, 14.46 per cent for three months and 11.79 per cent for six months.

 

Spot rupee opened at 38.88.93, slipped to 38.92-97 and then closed strongly at 38.72-76.

The cash-tom closed at 0.5-0.75 paise, the tom-spot at 0.75 paise, and cash-spot at 1-1.5 paise.

Yesterday, monthly premiums (in paise) closed at: Feb - 51-54; Mar - 120-125 Apr - 130-135; May -230-240; Jun - 270-280; Jul - 310-320; Aug - 345-355; Sept - 385-400; Oct - 420-440; Nov - 460-480; Dec - 500-520; and Jan - 540-560.

In the crosses, rupee closed at 63.55 against British pound, 21.33 against German mark, and 30.78 per 100 Japanese yen.