Re Rise Halted By Rbi Dollar Purchases

FOREX REPORT

The spot rupees steady appreciation against the dollar was halted by purchases made by the Reserve Bank of India (RBI) in the inter-bank forex market yesterday. The rupee closed at 35.775-785. Forward premiums remained soft with the six-month annualised closed at 4.42 per cent and the one year at 4.38 per cent.

The spot rupee opened at 35.775-785 and steadily appreciated to 35.75-76. In the afternoon, the RBI entered the market purchasing dollars. This halted the rupees rise and it steadily depreciated to close levels.

The cash-tom was 0/.25 paise, the tom-spot was .25/.25 paise, and the cash spot was 0/.5 paise. The premiums on the forward dollar remained soft as importers keep out of the market. Most of the paying pressure these days is from corporates who are hedging their foreign currency loan liabilities.

 

Monthly premiums in paise were 4-6 for June, 13-16 for July, 25-28 for August, 40-43 for September, 57-60 for October, 72-75 for November, 87-90 for December, 101-106 for January, 116-121 for February, 132-137 for March, 145-153 for April, 161-170 for May.

Overseas, the dollar weakened against the yen on apprehensions of intervention by the Bank of Japan. Uncertainities regarding E U kept the dollar steady against the mark. The rupee, tracking the dollar, closed slightly weaker at 58.33 against the pound, 20.70 against the mark, and 30.91 per 100 yen.