Re Weakens By 9 Paise, Sbi Sells $

FOREX REPORT

The rupee depreciated by nine paise during the day to close at 39.62-67. The State Bank of India (SBI) was selling dollars throughout the day and the dollar-rupee parity was determined by SBI quotes. Premiums however, sharpened on account of sustained corporate demand.

The RBI intervened in the forward market but its intervention had a limited impact. The one month shot up to close at 15.68 per cent, three month at 13.46 per cent, six month at 10.94 per cent, and 12 month at 10.56 per cent.

Spot Rupee opened at 39.61-67. The SBI kept quoting through the day and managed to absorb some of the dollar demand. Some foreign banks were also selling dollars. During the day, SBI kept revising quotes and took the rupee down to close levels.

 

Forward premiums shot up in the morning. They came off slightly after the RBI entered the market but again slipped on some corporate covering after RBI moved out.

Monthly premiums (in paise) for the year ahead closed at : Jan - 31-32; Feb - 74-75; Mar - 114-116; Apr - 152-157; May - 175-182; Jun - 195-205; Jul - 228-235; Aug - 255-265; Sep - 293-300; Oct - 325-335; Nov - 360-375 and Dec 390-405.

In the crosses, rupee closed at 64.61 against the British pound, 21.69 against the German mark, and 30.26 per 100 Japanese yen.