FOREX REPORT
The rupee closed against the dollar at 39.48-50.
One month premiums closed at 11.1 per cent yesterday, three months at 12 per cent, six months at 12.30 per cent and one year at 11.83 per cent.
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The rupee opened at 39.53-55, and then gained ground steadily to 39.45-47, a level at which State Bank of India entered the market as a buyer.
There was some selling from corporates and a foreign institutional investor, and this ensured that the Indian currency closed stronger than the level at which it opened.
Some banks were bringing in their FCNR(B) deposits and paying while the funds-surplus public sector banks were buying.
The lower call rates has also ensured that premiums have continued to rule lower. Funds in excess of Rs 4000 crore is parked with Reserve Bank of India through repos.
Yesterday, the cash tom was 0.25-0.50 paise, cash spot was 1.25-1.75 paise and tom spot was 1-1.50 paise.
Monthly premiums (in paise) closed at: 22-25 for March, 67-70 for April, 104-109 for May, 147-152 for June, 187-192 for July, 228-233 for August, 269-274 for September, 306-311 for October, 344-349 for November, 380-385 for December, 419-424 for January 1999 and 455-460 for February 1999.
In the crosses, rupee closed at 65.19 against the British pound, 21.81 against the German mark, and 31.07 per 100 Japanese yen.