FOREX REPORT
The Reserve Bank of India (RBI) intervention along with statements issued by the RBI governor in Colombo, had a sobering impact on the Indian currency, containing volatility. Spot rupee closed at 36.74-76. Forward premiums, however, weakened on good importer interest - the six-month closed at 7.68 per cent and one-year at 7.5 per cent.
Spot rupee had opened weaker at 36.71-74. It slipped to 36.76, but the apex bank intervention and the RBI governors statement cooled the market. Rupee recovered to 36.69-71 but corporate demand caused it to depreciate steadily to close levels.
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Cash-tom was 1.25/1.75 paise, tom-spot .25/.75 paise and cash spot 1.5/2.5 paise.
Forward premiums, which softened on Thursday, did an about-turn yesterday, climbing by as much as 19 paise, on the back of sustained corporate paying interest. Dealers say corporates are now covering open positions as they do not expect the rupee to recover much from its current fall. Monthly premiums (in paise) for the year closed at 4-7 for November, 29-32 for December, 55-60 for January, 76-81 for February, 103-108 for March, 126-131 for April, 148-153 for May, 169-174 for June, 191-196 for July, 213-218 for August, 233-238 for September, 253-258 for October, and 274-277 for November. In the crosses, rupee diped to close at 62.57 against the pound, hardened against the mark to close at 21.35, and diped against the yen to 29.28 per 100 yen.