FOREX REPORT
Forward premiums softened despite some intervention by the Reserve Bank of India (RBI) in the forward segment of the inter-bank forex market yesterday. Spot rupee, however, remained steady in a listless trading session. Spot rupee closed strong at 35.705-715. Forward premiums closed at 4.9 per cent for six-months and 4.82 per cent for one-year.
Spot rupee opened at 35.715-725. The apex bank kept out of the spot market. Trading remained fairly dull with only nominal activity being reported on the inter-bank and merchant front.
The demand lull saw the spot rupee close stronger during the day. Cash-tom was -.25/.25 paise, tom-spot .25/1 paise and the cash-spot -.25/1 paise.
In the forward segment, premiums softened yesterday. While the central bank did enter the forward market buying January outright, its purchases were minimal. The market, however, did not react to the RBIs limited intervention and premiums strengthened across the board from 3 to 15 paise.
Monthly premiums (in paise) for the year ahead were: August - 5-8; September - 18-21; October - 30-33; November 45-48; December - 61-64; January - 76-79; February - 90-93; March - 105-108; April - 121-124; May - 135-138; June - 150-153; July - 164-167.
The rupee has strengthened as other major currencies closing at 56.4 against the pound, 19.01 against the mark, and 30.22 per 100 yen.
