Rupee Loses Ground Further, Premiums Up

Trading in the inter-bank foreign exchange market was relatively subdued yesterday with the dollar moving in the range of Rs 35.71 to Rs 35.73. This was one paise higher than Tuesdays close of Rs 35.72.

The lacklustre spell, according to a cross-section of dealers, was the days cricket clash between India and South Africa.

The day saw a fair amount of buying on account of hightened paying pressure, the dominant players in the market being the banks and importers. According to a dealer, a leading public sector industrial financial institution was in the market buying the dollar.

A premier Calcutta-based state owned bank, who has been a regular in the market, was seen first selling greenbacks at Rs 35.72 and then buying it at Rs 35.7250.

 

The RBI, in an attempt to stall any undesirable appreciation in the value of the rupee, also entered the market, buying the American currency at Rs 35.73.On the supply front the position was good with several domestic and foreign banks selling the greenback.

The premiums also rose, thanks to paying interest.

The annualised forward premiums stood at 6.26 per cent, which was higher than Tuesdays 6.10 per cent. The monthly premiums were also higher at 3-5 for November, 18-21 for December, 39-42 for January, 61-64 for February, 89-92 for March, 109-112 for April, and 129-132 for May.