Rupee Range-Bound, Fowards Dip

FOREX REPORT

The rupee remained range-bound against the dollar touching a high of 38.72, and a low of 38.78, which was also the closing level.

Premiums on the forward dollar softened considerably despite buy-sell swaps transacted by the Reserve Bank of India (RBI) to close at 12.78 per cent for one-month, 15.85 per cent for three-month, 15.18 per cent for six-month, and 14.08 per cent for 12-month.

Spot rupee opened at 38.72-74 and slipped slightly in the morning to 38.76 on some dollar buying by the State Bank of India. However, it did not move much as the demand in the market was only nominal.

 

Forward dollar premiums softened despite RBI intervention.

The apex bank continued to transact sell-buy swaps across maturities in order to suck out liquidity from the money market.

The banking system is flush with funds and consequently, call rate were as low as one per cent. The softening in the overnight rate brought down the premiums, dealers said.

Monthly premiums (in paise) closed at : 18-20 for February, 75-80 for March, 136-139 for April, 175-180 for May, 225-230 for June, 275-280 for July, 310-320 for August, 350-360 for September, 390-400 for October, 430-440 for November, 470-480 for December, and 510-530 for January.

In the crosses, rupee closed at 63.30 against the pound, 21.35 against the mark, and 31.08 per 100 yen.