FOREX REPORT
The rupee recovered lost ground to close steady against the dollar despite some purchases by the Reserve Bank of India (RBI). It closed at 35.81-82. In the forward segment, the premiums remained soft with receiving interest outstripping paying interest. The 6-month and 1- year dollar were sold at premiums of 4.23 per cent.
The spot rupee opened at 35.81-82. It remained steady during the morning, and slipped to an intra-day low of 35.83 only after the RBI entered the market in the afternoon. However, the RBIs purchases were only nominal and the rupee soon recovered back to close at the days opening levels. Besides RBI, there were no major demand from other sources.
The forward premiums remained soft as forward dollar selling interest exceeded forward dollar paying interest. The market continued to be dominated by exporters who were selling their dollar remittances forward. There was no corresponding demand from importers.
Monthly premiums in paise were 0-2 for June, 9-11 for July, 21-23 for August, 36-38 for September, 52-54 for October, 67-69 for November, 82-84 for December, 98-100 for January, 112-115 for February, 127-130 for March, 143-146 for April, and 157-160 for May.
Overseas, the dollar depreciated. The rupee, on account of its equation vis-a-vis the dollar, closed at 58.58 against the pound, 20.62 against the mark and 31.50 per 100 yen.
