FOREX REPORT
The rupee slipped sharply against the dollar in the face of aggressive demand in the inter-bank forex market yesterday. It closed at 35.94-96. The forward premiums remained firm across the board with the six-month annualised closing at 7.17 per cent.
The spot market saw the State Bank of India (SBI) and importers actively purchasing the greenback, particularly during the latter half of the day. The rupee opened at 35.88-89, but climbed steadily to the closing levels.
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Importers have been increasingly coming into the market covering for the short term in anticipation of the rupee depreciating to 36.30.
The forwards market also saw a good bit of paying interest from importers, who were particularly interested in February and March.
This was able to more than offset the nominal receiving that was indulged in by the Reserve Bank of India for spot August.
The monthly premiums in paise were 4-7 for February, 23-26 for March, 48-51 for April, 68-71 for May, 89-92 for June, 114-117 for July, and 134-137 for August.
On the cross-currency front, the rupee surprisingly strengthened marginally against the major world currencies despite weakening against the American currency. It closed at 59.21 against the pound, 21.38 against the mark, and 29.17 against the yen.