FOREX REPORT
The rupee remained steady against the dollar and moved in the range of 0.5 paise in the inter-bank forex market yesterday. The forward premiums also remained steady with the six-month annualised closing at 4.53 per cent. The spot market was quiet as compared with the previous week. The spot rupee opened at 35.76-77 and stayed in that range for most of the day. Activity was sluggish and nominal dollar demand was met with more or less the same amount of supply. Towards evening, the State Bank of India entered the market but was a passive spectator. The Reserve Bank of Indias presence was not noticed in the market, however, its reference rate was higher at 35.77 per cent.
The cash-tom and tom-spot were -.25/.25 paise, while the cash-spot was -.5/.5 paise.
Forward premiums eased by two paise during the day. Receiving pressure exceeded paying pressure in the markets, as importers kept out of the market. Monthly premiums in paise were 3-5 for May, 14-17 for June, 31-34 for July, 48-51 for August, 64-67 for September, 78-81 for October, 89-91 for November. One-year premiums were 163-168 paise.
Overseas, the dollar registered a sharp rise against other major currencies as there was no indication from the G-7 regarding intervention in $:DM and $:Yen following its meeting on Saturday. The rupee closed steady at 58.13 against the pound, 20.66 against the mark, and 28.24 per 100 yen.
