Rupee, Forwards Move In One-Paise Range

FOREX REPORT

The rupee was traded in a one-paise range yesterday with ample dollar supplies available in the market. The forward premiums also moved in a one-paise range with the near-term moving in league with far-term forwards. The inflows owing to the auction did not affect the forwards market much.

The spot rupee moved in the 43.6550-43.6375 range. "The market is flush with dollars, the supply is abundant with the nationalised banks and foreign banks only selling, and very few banks are buying," said one dealer with a private sector bank.

"The market started with lots of buying but the spot rupee recovered to close one paise higher," said a dealer from a nationalised bank.

 

The spot rupee is expected to remain in the current range with it stabilising at 43.65. Said a dealer form a private sector bank, "The rupee today may move between 43.62-43.67."

The forwards market, too, saw little movement for the day. They hovered around a 0.50-1 paise range before closing lower. "It was a very soft market with there being a lot of receiving, especially in the near-term forwards," said a dealer from a foreign bank.

"Unless there is some major activity today, the forwards will continue to remain in this range, with the near-term forwards going up by 2-3 paise," said a dealer with a private sector bank.

In the crosses, the rupee traded against the pound at 67.16, against the euro at 38.99 and against the yen at 40.13 per hundred yen.

The closing levels of annualised premiums were: 1-month - 2.25 per cent (2.32 per cent on Wednesday); 3-month - 2.55 per cent (2.55 per cent); 6-month - 2.66 per cent (2.76 per cent); 9-month - 2.88 per cent (2.94 per cent); 12-month - 2.94 per cent (2.94 per cent). Cash-tom and tom-spot closed at 0.12-0.25 and 0.50-1, while cash-spot closed at 0.25-0.50