Spot In Fine Band, Forwards Composed

FOREX REPORT

The spot rupee saw movement in a two-paise range yesterday, between 43.6375 and 43.6525, before winding up at 43.6450. Forward premiums were calm with little trading being logged.

Spot rupee moved in a broader range yesterday due to a heightened level of trading activity. A dealer with a private sector bank said banks were buying in the morning and there was a genuine customer demand.

"Banks in general were not expecting the rupee to open lower."

According to another dealer, the market was very volatile at both ends _ higher as well as lower. "The weekend effect is continuing to make its presence felt. We think that despite such volatile fluctuations, the rupee will stabilise at the 43.6500 mark," he said.

 

"The rupee will probably trade in these levels tomorrow, unless a need for lower levels is felt among participants," said a dealer from a private bank.

Forward premiums saw very little movement yesterday. They traded in a very narrow range and are expected to remain on similar levels tomorrow. "A very lacklustre market," said a dealer from a foreign bank.

There is not much movement expected for tomorrow, though a dealer from a nationalised bank said that the auctions and the resulting payments could affect liquidity conditions and hence the forwards market. However, others feel otherwise. A dealer from a private sector bank feels that "the auction will not affect the forwards market. They will continue to trade in a very narrow range."

In the crosses, the rupee traded against the pound at Rs 68.16, against the Euro at Rs 39.20 and against the yen at Rs 40.06 per hundred yen.