Re Slips To 43.12, Premiums Follow

FOREX REPORT

The rupee ended slightly weaker against the dollar yesterday following active two-way trade as corporates sought to book profits, dealers said.

Spot rupee closed at 43.08-12 compared with 42.95-43.05 on Wednesday.

Forward rupee firmed on lower corporate dollar demand, traders said. Dollar premiums closed at 7.96 per cent for one month (8.06 per cent on Wednesday), 8.39 per cent for three months (9.02), 8.46 per cent for six months (9.03 per cent) and 9.20 per cent for 12 months (9.55).

Spot rupee opened at 43.00-15 amid uncertainty as the State Bank of India (SBI) did not offer a quote during the first few minutes of trade. However, soon after, there was good two-way interest as banks and corporates bought and sold to take advantage of exchange rate movements.

 

The SBI sold dollars in at least two rounds during the day but the RBI kept out of the market completely, dealers said.

Cash-tom was .75/1.25 paise, tom-spot was 3/4 paise and cash-spot was 3.75/5.25 paise.

Forward dollar premiums crashed on inter-bank receiving as anticipated corporate demand did not materialise, dealers said.

Premiums (in paise) closed at: Aug - 10-13; Sep - 40-45; Oct - 72-77; Nov - 101-106; Dec - 132-139; Jan - 162-169; Feb - 292-202; Mar - 228-238; Apr - 263-273; May - 398-308; Jun - 333-345; Jul - 368-382. In the crosses, the rupee closed at 69.99 against the British pound, 24.15 against the German mark and 29.79 per 100 Japanese yen.