Rupee Up Marginally, Forwards Slip

FOREX REPORT

The rupee notched a marginal gain over the dollar in the inter-bank forex market yesterday. It closed at 35.80-81. Forward premiums slipped in a market dominated by receiving activity. The six-month annualised premium closed at 4.6 per cent.

Spot rupee opened at 35.81-82 in expectation of month-end demand by the State Bank of India (SBI). However, SBI did not buy dollars and the rupee climbed to 35.785-795 levels. Then the Reserve Bank of India (RBI) purchased a few spot dollars. This saw the rupee slip a bit to the close levels. Cash-tom was .25/.5 paise, the tom-spot was .5/1.5 paise, and the cash-spot was 1/2 paise.

 

In the forward segment, the premiums on the forward dollar slipped as receiving activity exceeded paying activity. There was no demand from corporates or institutions.

Monthly premiums for the year ahead were 6-8 for June, 17-20 for July, 31-34 for August, 49-52 for September, 66-69 for October, 80-83 for November, 94-97 for December, 110-115 for January, 126-131 for February, 146-151 for March, 165-170 for April, and 182-187 for May.

Overseas, the yen weakened against the dollar following data released by Japan showing weak industrial output. It has remained steady against other currencies. Tracking the dollar, the rupee has strengthened against the yen at 30.82 per 100 yen, remained steady against the mark at 21.03, and weakened against the pound at 58.65.