Rupee Slips But Recovers To 39.83

FOREX REPORT

The rupee slipped against the dollar to a low of 39.85 intra-day, but recovered partially to close at 39.80-83.

Forward premiums recovered on intervention by the Reserve Bank of India (RBI). Premiums closed at 14.91 per cent for one month, 12.07 per cent for three months, 10.25 for six months, and 10.01 per cent for 12 months.

Spot rupee opened at 39.76-78, and slipped to 39.85 by 11:00 am. It hovered at these levels till afternoon, after which, the SBI entered the market bidding the rupee up to 39.79. However, corporate demand once again pushed rupee down to close levels.

 

At close, cash-tom was .5/1 paise, tom-spot was .5/1.25 paise, and cash-spot was 1/1.5 paise.

Forward premiums first firmed up on corporate covering but them came off on RBI intervention by swaps. The central bank was receiving for July which eased the pressure on the premiums. At the end of the day, premiums closed lower than Fridays close.

Monthly premiums (in paise) for the year ahead closed at : Jan - 27-28; Feb - 69-71; Mar - 105-107; Apr - 137-140; May - 158-162; Jun - 190-195; Jul - 212-215; Aug - 245-248; Sep - 280-285; Oct - 310-315; Nov - 345-380; and Dec - 375-385.

In the crosses, rupee closed at 64.27 against the British pound, 21.94 against the German mark, and 30.16 per 100 Japanese yen.