FOREX REPORT
The rupee slipped by 45 paise against the dollar to close at 42.22-25 after State Bank of India(SBI), which had successfully capped the rupee at 41.80 since the beginning of this month, refrained from doing so yesterday. On Monday, the rupee had closed at 41.79-80.
The SBI offered an initial quote of 41.78-80, and then went off the market almost immediately.
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At this point of time, the rupee slid to 42 against the dollar, and traded at an all-time low of 42.26.
The SBI was later buying dollars between 42.13 and 42.17, and then capped the rupee by quoting 42.19-24. The RBI's reference rate was 42.15 per US dollar as against 41.80 on Monday.
Given that spot was volatile, forward premiums moved up, and then declined to close near about Monday's levels.
For instance, October was quoted at 168-173, and then declined to 160-165. Yesterday, one month premiums closed at (in per cent) 8.50 (8.08 on Monday), three month at 9.92 (9.78), six month at 10.03 (10.04) and one year at 10.06 (10.18).
Yesterday, the cash tom was 0-0.50 paise, cash spot was 0-1 paise and tom spot was 0-0.50 paise.
Monthly premiums (in paise) closed at : 16-19 for June, 50-55 for July, 89-94 for August, 124-131 for September, 160-165 for October, 194-199 for November, 237-242 for December, 275-280 for January, 1999, 310-315 for February, 347-352 for March, 382-387 for April and 410-420 for May.