State Bank Purchases Weaken Rupee

FOREX REPORT

The spot rupee depreciated against the dollar on account of purchases made by the State Bank of India (SBI) in the inter-bank market yesterday. It closed at 35.815-825. Forward premiums softened with the six month annualised premium closing at 4.21 per cent and the one year premium at 4.18 per cent.

The spot rupee opened at 35.805-815. It remained at this level upto 12:30 p.m after which the State Bank of India (SBI) entered the market. The SBI is said to have purchased $ 30 million for its corporate clients. On account of the SBI's dollar purchases, the rupee slipped slightly to an intra-day low of 35.83. However, after the SBI pulled out of the market, the rupee recovered by one paise to close at 35.815-825. The cash-tom and tom-spot were 5/0 paise each, and the cash-spot was .25/0 paise.

 

In the forward segment, forward dollar selling by exporters continued to dominate the market.

Monthly premiums in paise were 0-2 for June, 8-11 for July, 19-22 for August, 34-37 for October, 63-66 for November, 78-81 for December, 93-96 for January, 108-111 for February, 124-127 for March, 140-143 paise for April and 154-157 paise for May.

Overseas, the market did not react to data released on the Japanese economy. The dollar remained steady against other major currencies. The rupee closed at 58.66 against the pound, 20.74 against the mark and 31.58 per 100 yen.