FOREX REPORT
The spot rupee was under pressure yesterday closing at 42.22-25 against the dollar. However, a couple of banks indicated that the rupee closed at 42.25-20, a level at which they had struck deals.
On Friday the rupee had closed at 42.00-05 and at 42.30-32 on Thursday. The spot rupee opened at 42.05-08 and touched an intra-day low of 42.31. The RBI reference rate was 42.27 as against 41.96 on Friday.
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The SBI bought two rounds in the morning and the rupee slipped from 42.20 to 42.27 by noon. Later, when the rupee slipped to 42.31, the State Bank pushed the rupee up to 42.25-28 and then to 42.19-23. According to some dealers, SBI also sold dollars.
Forward premiums increased with one month closing at (per cent) 12.02 (10.74 on Friday), three month at 11.73 (10.81), 6 month at 10.97 (10.04) and one year at 10.30 (9.63). A dealer said that there was paying by a corporate for December end. With RBI advising banks to desist from arbitraging, the repo rate cut did not see near term premiums declining.
Yesterday cash tom was 0.25-0.50 paise, cash spot was 0.50-1.00 paise and tom spot was 0.25-0.50 paise.
Monthly premiums (in paise) closed at : 17-21 for Jun, 59-64 for Jul, 101-106 for Aug, 137-142 for Sep, 173-178 for Oct, 208-213 for Nov, 241-250 for Dec, 280-287 for Jan and 316-323 for Feb, 323-333 for Mar, 380-393 for Apr and 413-423 for May 1999.