Rupee Closes At 35.755-765, Forwards Soft

FOREX REPORT

The rupee, yesterday, initially gained against the dollar in the inter-bank forex market. It, however, slipped to close at 35.755-765 following the Reserve Bank's intervention. Forward premiums remained soft with the six-month annualised closing at 4.59 per cent.

The spot rupee opened at 35.77-78. However, good supplies from exporters and non-resident Indian accounts led to a climb in the rupee to the 35.74 range. Market sources saidthe RBI intervened purchasing over $50 million. This saw the rupee lose some ground and it descended towards the close levels. RBI's reference rate for the dollar was Rs 35.77. Cash-tom and tom-spot were -.25/.25 paise, and the cash-spot was -.5/.5 paise.

 

In the forward segment, good receiving pressure saw premiums ease. While the premiums strengthened during the day on account of profit-taking by banks, increased receiving pressure on account of arbitrage activities ensured that premiums softened towards close.

Monthly premiums in paise were 0-2 for April, 6-9 for May, 17-20 for June, 34-37 for July, 53-56 for August, 68-71 for September, and 84-87 for October. One year premiums were 155-165 paise. Overseas the dollar strengthened against the mark and the yen. It weakened against the pound.The rupee, meanwhile, remained fairly steady against the major currencies, closing at 58.54 against the pound, 20.94 against the mark, and 28.33 per 100 yen.