Rupee Loses Ground, Forwards Inch Up

FOREX REPORT

The spot rupee lost ground against the dollar following aggressive purchases by the Reserve Bank of India and State Bank of India in the inter-bank forex market yesterday. It closed at 35.80-82.

Forward premiums inched up with the six-month annualised at 4.38 per cent and the one year at 4.58 per cent.

The spot rupee opened at 35.76-77. The RBI entered the market several times during the day and the estimations of its purchases is placed at $200 million. SBI is said to have bought around $25 million.

The cash-tom was at -.25/.25 paise, the tom-spot was at 0/.5 paise and the cash-spot was at -.25/0.75 paise.

 

Forwards remained steady as importers kept out of the market. Exporters, however, actively received the premium. Buying interest came from corporates who are hedging loan exposures.

The forward premiums in paise were 3-5 for June, 12-15 paise for July, 25 - 28 for August, 39-42 for September, 56-59 for October , 71-74 for November, 86-89 for December, 100-105 for January, 116-121 for February, 131-136 for March, 148-153 for April, and 162-167 for May.

Internationally, the bearish phase against the dollar continued and the yen appreciated further.

The rupee closed marginally higher at 58.5 against the pound and 20.9 against the mark and 32.8 per 100 yen.