Re Weakens, Forwards Follow Suit

FOREX REPORT

The rupee weakened against the dollar yesterday to close at 38.78-81 following some dollar buying by the State Bank of India (SBI).

Forward premiums softened following lacklustre paying interest by corporates. Premiums closed at 12.5 (as against 12.81) per cent for one month, 15.41 (15.92) per cent for three months, 14.25 (14.63) per cent for six months and 13.46 (13.61) per cent for 12 months.

Spot rupee opened at 38.74-76. Morning dollar purchases by the State Bank of India pushed the rate down to 38.80, and it hovered around that level for the rest of the day.

Other than the State Bank of India demand, dealers said that activity was lacklustre.

 

Cash-tom was at .25/.75 paise, tom-spot at 2/4 paise and cash-spot at 2.25/4.5 paise.

Forward dollar premiums fell by a few paise for most months. Dealers said there was not much importer paying interest. While premiums firmed up for the period June to August, they came off by 10 to 15 paise for other months.

Monthly premiums (in paise) closed at : 8-13 for February, 58-63 for March, 122-127 for April, 163-168 for May, 210-215 for June, 255-260 for July, 285-290 for August, 327-332 for September, 365-375 for October, 400-410 for November, 440-450 for December, and 475-495 for January.

In the crosses, rupee closed at 63.57 against the pound, 21.39 against the mark and 31.63 per 100 yen.