FOREX REPORT
The Reserve Bank of India (RBI) struggled to contain the rupee by purchasing dollars in both the spot and forward segments of the inter-bank forex market yesterday. The forward dollar held ground with the six-month premium closing at 5.3 per cent and the one-year at 5.2 per cent.
Spot rupee opened at 35.7175-7275. Passive dollar purchases by the apex bank pushed it down to 35.735-74. However, substantial inflows ruined the central banks efforts, and the Indian currency climbed back to close strong at 35.71-72. The RBI is reported to have purchased anywhere between $20 million to $40 million. Cash-tom was 0/.5 paise, tom-spot .5/1 paise and cash-spot .5/1.5 paise.
The forward segment was volatile. RBIs absence in the market in the morning caused banks to start selling forwards, causing premiums to weaken. However, in the afternoon, the apex bank bought for September to December, fuelling sentiment once again. In merchant trade, while exporters have been selling, importers are not yet buying.
Monthly premiums (in paise) for the year ahead were: August - 8-11; September - 22-25; October - 38-41; November 52-55; December - 69-72; January - 85-88; February - 100-103; March - 117-120; April - 134-137; May - 148-151; June - 164-167; July - 179-182.
The rupee has strengthened as other major currencies closing at 57.08 against the pound, 18.9 against the mark, and 30 per 100 yen.
