Re Slips A Touch To End At 38.88-93

FOREX REPORT

The rupee declined against the dollar to close at 38.88-93 against the previous days (Thursday) close of 38.73-77.

Forward premiums declined, to end the day at 14.31 per cent for one-month, 14.46 per cent for three-month and 11.79 per cent for six-month.

Spot rupee opened at 38.70-75 and then dipped on account of covering by importers and buying by State Bank of India (SBI).

The cash-tom closed at 0.5-1.5 paise, tom-spot at 0.25-1.25 paise, and cash-spot at 0.75-1.75 paise.

The rupee resources of the banking system have been augmented on account of buy-sell swaps undertaken by the Reserve Bank of India.

 

At the samea time there have been significant inflows on account of maturing of treasury bills and coupon flows since the Reserve Bank of India decided to suck liquidity from the banking system.

This has led to decline in call rate and hence forward premiums declined across the board by at least 30 paise because call rate has ruled in the region of 9-9.50 per cent on Saturday as well as yesterday.

Monthly premiums (in paise) closed at: February - 35-40; March - 85-90; April - 130-135; May -170-180; June - 215-225, July - 255-265; August - 290-300; September - 330-340; October - 370-380 November - 410-420; December - 450-460; and January - 485-505.

In the crosses, rupee closed at 63.35 against pound, 21.47 against mark, and 30.40 per 100 yen.