Rupee Moves Up, Forwards Stay Calm

FOREX REPORT

The rupee appreciated against the dollar in the face of dull trading in the inter-bank forex market yesterday. It closed at 35.785-795. The forward premiums, on the other hand, remained soft as receivers continued to outnumber payers in the market. The six-month annualised premium closed at 4.47 per cent.

The spot rupee opened at 35.80-81. However, following nominal demand characterised by good supplies, the rupee appreciated steadily through the day. The Reserve Bank of India (RBI) and other major players were conspicuous by their absence in the market.

The cash-tom and tom-spot were -.25/.25 each and the cash-spot was -.5/.5.

 

The forward segment was characterised by dull activities, dominated largely by exporters who were receiving the premium. Importers continued to stay out of the market. The only payers in recent times are corporates who are hedging their forex loan liabilities.

Monthly premiums in paise were 4-6 for June, 13-16 for July, 26-29 for August, 42-45 for September, 59-62 for October, 73-76 for November, 88-91 for November, 103-108 for January, 118-123 for February, 137-142 for March, 156-161 for April, and 172-177 for March. Overseas, the markets remained quiet with the dollar remaining steady against the pound and the mark.

However, it depreciated against the yen. The rupee closed at 58.50 against the pound, 20.73 against the mark and 115.90 per 100 yen.