Rupee, Forward Premiums Edge Up

FOREX REPORT

The rupee inched up against the dollar in the inter-bank forex market yesterday, closing at 35.8850-8925. Forward premiums also gained with the six-month annualised closing at 7.6 per cent.

The spot market remained inactive with only nominal corporate demand.

The rupee opened at 35.90-95, but during the course of the day, the dollar slipped to the closing levels. The Reserve Bank of India (RBI) was in the market buying at 35.8850. The State Bank of India, arguably the bank that moves the market, was not noticed trading.

The cash-tom was .25/.25 paise, the tom-spot was .25/.75 paise, and the cash-spot was .5/1 paise.

 

The forward premiums continued to inch up across the board closing higher than they did last week.

Dealers attributed this to increased paying by importers and market correction after RBIs aggressive receiving prior to and immediately following the redemption of India Development Bonds.

The monthly premiums in paise were 20-22 for March, 46-49 for April, 67-70 for May, 88-90 for June, 115-117 for July, 137-140 for August and 158-160 for September.

Overseas, the dollar slipped against other currencies.

The rupee closed at 58.32 against the pound, 21.42 against the mark, and 29.36 per 100 yen.