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Rupee Steady, Forwards Ease Anew

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Last Updated : Mar 11 1997 | 12:00 AM IST

FOREX REPORT

The rupee remained steady against the dollar, moving in a narrow range of two paise in the inter-bank forex market yesterday. It closed at 35.855-865.

Good receiving by exporters caused the forward premiums softened further with the six-month annualised ending the day at 6.4 per cent.

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The spot market saw good dollar supplies from foreign institutional investors and exporters.

The rupee opened at 35.86-87. The State Bank of India and the Reserve Bank of India were present, picking up the greenback at 35.86 levels quoted by banks.

In the face of good supplies, the rupee registered a marginal rise to the close levels. The central banks reference rate for the dollar was 35.86.

The cash-tom was -.25/.25 paise, the tom-spot and cash-spot were -.25/.75 paise.

In the forward segment, premiums continued to soften as receiving pressure from exporters far outstripped paying pressure.

The near-end premiums slipped alongside the domestic inter-bank call money rates. The far-end premiums slided as exporters sold their remittances forward.

Monthly premiums in paise were 3-5 for March, 22-25 for April, 39-42 for May, 59-62 for June, 82-85 for July, 104-107 for August, and 125-128 for September. One year premiums were 233-255 paise.

Overseas, the dollar strengthened against the other currencies, particularly the pound as expectations of a hike in British interest rates receded. The rupee moved sharply upwards against other currencies, closing at 56.93 against the pound, 20.74 against the mark, and 29.16 per 100 yen.

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First Published: Mar 11 1997 | 12:00 AM IST

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