Rupee Unmoved, Forwards Stay Easy

FOREX REPORT

The rupee remained steady against the dollar in the face of inaction in the inter-bank forex market yesterday. It closed at 35.86-87. Forward premiums also remained easy as exporters continued to sell dollars forward. The six-month annualised closed at 6.6 per cent.

The spot market was described by dealers as dull as trading was very quiet. The rupee opened at 35.865-875. Corporate demand was only nominal. The State Bank of India (SBI) did come in buying first at 35.865 and then at 35.86. It must have got good supplies, said a dealer. The Reserve Bank of India (RBI) was also present though passively. Its reference rate was 35.87 to a dollar.

 

The tom-spot and the cash-spot were -.25/.75 paise.

The forward premiums continued to ease by one to three paise for April to September. Exporters are receiving the premium by selling their receivables. Importers, however, are not as interested in paying for the greenback.

The monthly premiums in paise were 5-8 for March, 25-28 for April, 45-48 for May, 64-67 for June, 86-89 for July, 110-113 for August, and 131-134 for September. One-year premiums were at 245-255 paise.

Overseas, the market continued to remain bullish on the dollar. The rupee weakened against other major currencies. It closed at 58.32 against the pound, 211 against the mark, and 29.75 per 100 yen.