FOREX REPORT
The rupee remained rock steady against the dollar in a listless inter-bank market yesterday. The spot rupee closed at 35.695-705. The forward premiums moved up slightly with the six-month annualised closing at 3.92 per cent and the one-year at 4.17 per cent.
The spot rupee opened at 35.695-70. Demand in the market was only nominal. Market sources say that financial institutions bought some dollars. However, good supply ensured that the rupee did not lose ground. The Reserve Bank of India (RBI) was not noticed in the market yesterday. The cash-tom and tom-spot was 0/.125 paise, and the cash-spot was .125/.25 paise.
In the forward dollar segment, premiums moved up slightly. Premiums have remained firm despite lack of demand. Most of the paying support has been from corporates hedging forex liabilities. However, the market feels that the rates will lower further.
Forward dollar premiums in paise for the coming year were 0-2 for July, 7-10 for August, 17-20 for September, 28-31 for October, 39-42 for November, 53-56 for December, 67-70 for January, 77-80 for February, 91-94 for March, 106-109 for April, 120-123 for May, 133-136 for June.
In the crosses, the rupee regained lost ground to close stronger against other major world currencies closing at 59.40 against the pound, 19.50 against the mark, and 31.74 per 100 yen. This follows the dollars strengthening in the international markets.
