FOREX REPORT
The rupee retained its level against the dollar in the inter-bank forex market yesterday. It closed at 35.885-895. The premiums crept up with the six-month annualised closing at 7.19 per cent. Activity in the spot market was nominal with moderate corporate buying. The rupee opened at 35.885-895.
The State Bank of India (SBI) made some nominal purchases. Towards the end of the day, the Reserve Bank of India (RBI) also entered the market buying at 35.89 (also its reference rate for the day). However, it did not actively bid it only picked up banks offers.
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The cash-tom was .25/.5 paise, the tom-spot was .5/1 paise, and the cash-spot was .75/1.5 paise. In the forwards segment, the premiums continued to strengthen. Dealers say that the market is recovering from the RBIs robust receiving activities last week. Last week, the apex bank was actively selling forward dollars putting a downward pressure on the premiums. Some banks said that importers were also booking forward.
The monthly premiums in paise were 0-2 for February, 18-21 for March, 42-45 for April, 64-67 for May, 85-88 for June, 109-112 for July, and 131-134 for August. One-year premiums were 245-265 paise.
Overseas, the dollar slipped sharply against the pound and the yen. Consequently, the rupee has also weakened against these currencies. It closed at 58.13 against the pound, 21.29 against the mark, and 29.24 per 100 yen.]