Rupee Hardens, Forwards Follow Suit

FOREX REPORT

The rupee strengthened further against the dollar yesterday following lacklustre demand. It closed at 35.77-78. Forward dollar premiums strengthened marginally with the six-month closing at 3.61 per cent and the one year premium at 3.82 per cent.

The spot segment was described by dealers as dull. The rupee opened at 35.785-795. None of the major players including the RBI and the SBI were seen in the market yesterday. As a result the spot rupee moved upward to the close levels.

New York being closed today, there was no activity in cash-tom and tom-spot. Cash-spot was at 1.5/3 paise.

 

In the forward segment, the premiums were slightly bid although there was not much paying interest, there was some enquiries being made about the forward dollar. This pushed up the rate of the forward dollar by a paise.

Monthly premiums in paise were 4-7 for July, 12-15 for August, 22-25 for September, 35-38 for October, 46-49 for November, 59-62 for December, 69-72 for January, 79-82 for February, 93-96 for March, 107-110 for April, 114-123 for May, 134-137 for June, and 136-140 for July.

Overseas, data released on the US economy did not generate any excitement as the data met with market expectations. This saw the dollar come off slightly after gaining for two days.

The rupee closed slightly weak against the pound at 59.92, but remained steady against the mark at 20.41, and the yen at 31.45 per 100 yen.