Re Stays Firm, 6-Month Forward At 4.76%

FOREX REPORT

The rupee appreciated against the dollar in the inter-bank forex market yesterday as buyers preferred to keep away. It closed at 35.80-81.

Forward premiums moved up marginally following some paying pressure in the morning. The six-month annualised closed at 4.76 per cent. The spot rupee opened at 35.825-835. There was some demand in the morning by the State Bank of India (SBI). Its purchases, although nominal, saw the rupee slip to the intra-day low of 35.834-854 in the afternoon before strengthening to the day's close.

The central bank was rumoured to have entered the market. Its reference rate, based on the rates being quoted in the afternoon, was at 35.84. The cash-tom was .75/1 paise, the tom-spot was .25/2.5 paise, and the cash-spot was 1/1.5 paise. The forward premiums strengthen marginally following some paying pressure in the morning. Dealers said the market reacted to the finance minister, P Chidambaram's statement on Thursday, supporting a weaker rupee. Monthly premiums in paise were 3-4 for May, 11-13 for June, 25-27 for July, 41-43 for August, 57-59 for September, 75-77 for October, and 87-89 for November.

 

Overseas, a lot of volatility was witnessed in the yen and the mark which have shown a tendency to strengthen against the dollar.

The rupee closed at 58.74-78 against the pound, 21.05-10 against the mark, and 31.05-10 per 100 yen.