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Rupee Appreciates Amidst Flux

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Last Updated : Jul 04 1998 | 12:00 AM IST

FOREX REPORT

The rupee came off an intra-day low of 42.53 to notch a marginal three-paise gain against the dollar on Friday. It closed at 42.45/47 against the previous close of 42.48/50 on two-way inter-bank trade, dealers said. They said trade was largely profit-driven as banks sought to make gains on the exchange rate movement.

The forward rupee gained in the near-absence of importer buying -- dollar premiums eased to close at 10.0 per cent for one month (11.2 on Thursday), 9.60 per cent for three months (10.0), 9.70 per cent for six months (10.2), and 10.0 per cent for 12 months (10.3).

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"Trade was only profit driven. The rupee moved in a 10 paise band but there was no change in sentiment," a private bank dealer said. Corporate activity was nominal.

The rupee opened weaker at 42.53/55, but firmed to 42.46/47 an hour later. It again slipped to 42.52/54, but re-gained to 42.40/42 late noon before weakening again to the close. The cash-tom quoted at 1/2 paise, cash-tom at 1.5/2.5 paise, and tom-spot at 2.5/4.5 paise.

Forward rupee appreciated on a near-absence of importer paying interest, dealers said. Premiums (in paise) closed at: Jul - 25-28; Aug - 61-66; Sep - 91-96; Oct - 125-130; Nov - 160-165; Dec - 193-198; Jan - 231-238; Feb - 269-276; Mar - 308-315; Apr - 343-330; May - 378-385; Jun - 412-422. In crosses, the rupee closed at 70.05 agaisnt the British pound, 23.40 against the German mark, and 30.33 per 100 Japanese yen.

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First Published: Jul 04 1998 | 12:00 AM IST

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