Re Up A Paise, Forwards Rise On Rbi Move

FOREX REPORT

The rupee appreciated by one paise against the dollar in the face of dull trading in the inter-bank forex market yesterday. It closed at 35.81-82.

The forward premiums closed slightly higher as the Reserve Bank of India entered the market. The six month annualised closed at 4.8 per cent. The spot market remained dull with only nominal trading activities reported. The spot rupee opened at 35.82-83. Moderate demand and good supplies saw the rupee climb a notch. Much of the spot demand is said to have come from banks paying the premium to exporters. In the course of the day, the rates moved up to close levels. While the RBI did not enter the market, its reference rate was 35.82 as against 35.83 the previous day.

 

The forward segment was relatively saw some activity as the RBI came in to purchase outright for May, June and July. While premiums strengthened across the board exporter receiving kept the premiums from strengthening too much. Monthly premiums in paise were 3-4 for May, 11-14 for June, 25-28 for July, 41-44 for August, 57-60 for September, 74-77 for October, and 86-89 for November. One year premiums were 159-169 paise.

Overseas, the dollar weakened against other major currencies The rupee strengthened against the pound and the mark, but weakened against the yen. It closed at 58.746 against the pound, 21.13 against the mark, and 30.87 per 100 yen.