Re Moves In Narrow Range, Forwards Dip

FOREX REPORT

The inter-bank forex market yesterday witnessed dull trading with the rupee moving in a narrow range of three paise.

The spot rupee opened at 35.86 to a dollar, which was also the intra-day high. It finally closed at 35.84-85.

Forward premiums dipped slightly as exporters continued to sell their forward remittances. Six-month annualised premiums closed at 4.9 per cent.

The Reserve Bank of India (RBI) was not present in the market both in the forward and spot segment.

The State Bank of India entered the market during the day and indulged in selective buying .

The cash-tom was .50/1.00 , the tom-spot was 0 /.5 and the cash-spot was .50/1.50 paise. The Reserve Bank ofg India made no attempt to support the forward dollar.

 

Monthly premiums in paise were 4-6 for May, 14-16 for June, 28-31 for July, 46-49 August, 63-66 for September, 80-85 for October, and 92-95 for November. One-year premiums were 164-169 paise.

Overseas, the bearish phase of the dollar continued against all major currencies.

The recent hike in interest rates in the UK witnessed higher transactions in the pound.

The rupee strengthened against the pound closing at 58.04 but weakened against other currencies and quoted at Rs 21.16 against the mark, and Rs 29.40 per 100 yen.