Rupee Firms Up, Forward Premiums Steady

FOREX REPORT

The rupee strenghtened against the dollar in a lacklustre inter-bank forex market yesterday. It closed at 35.85-86. The forward segment saw exporters come in more aggressively than they have in the last week. The six-month annualised remained steady at 7.45 per cent.

The rupee began the day at 35.86-87. With low-key corporate buying of dollars, it slipped to 35.875 before inching back up to the close levels. Neither the State Bank of India nor the RBIwere noticed in the market. The RBIs reference rate for the dollar was Rs 35.88. The cash-tom and tom-spot were -.25/.25 paise, and the cash-spot was -.5/.5 paise. In the forward segment, exporters came in to buy dollars forward, particularly for the months of April and May. The monthly premiums in paise were 8-11 for February, 30-33 for March, 56-59 for April, 76-79 for May, 101-104 for June, 127-130 for July, and 147-152 for August. The one year premiums were 240-270 paise.

 

Meanwhile the dollar continued to remain strong against other major currencies. It was .6092 against the British pound, 1.6460 against the German mark and 122.11 against the Japanese yen. Dealers say that the G-7 is to discuss the dollars sudden rise at its comming conference.

The rise is attributed to the strong fundamentals of the American economy. The GDP growth rate for the fourth quarter was 4.7 per cent and annualised inflation was 2.5 per cent.