Rupee Claws Back To 35.69, Forwards Slump

The rupee hardened against the dollar in the domestic forex markets yesterday. On the other hand, forward premiums were quoting lower. This ,dealers was a reaction to the statements by the RBI governor that a fall in interest rates was imminent.

The late-session gains notched up by the rupee was largely due to sizeable dollar sell-offs by exporters. According to dealers, exporters began selling dollars after news of a cut in interest rates was announced by the governor on Monday.

The rupee resumed the day between 35.71 and 35.72 and hovered around this figure for the better part of the day. However, they later declined and closed in the region of 35.68 to 35.69.

 

Forward premiums, which were quoting 6 to 7 paise lower on the 6-month dollar, slid by one percentage point and stood at 9.45 per cent on an annualised basis as against 10.3 per cent on Monday. This was accompanied by a fall in the monthly premiums. Monthly premiums rates were quoting at 0.5/1 paise for September-end, 26/28 paise for October, 48/50 paise for November, 77/79 paise for December, 113/115 paise for January, 143/145 paise for February and 175/177 paise for March-end.

Internationally, the greenback was range-bound against most currencies, particularly with the crucial FOMC meeting underway. The dollar-mark rates were quoting between at 1.5134 and 1.5136.