FOREX REPORT
The rupee weakened against the dollar yesterday amid uneasiness on expectations of the Asian crisis entering a fresh phase, dealers said. Spot rupee closed at 42.60-62 against 42.48-50 on Thursday.
The forward rupee also slid as corporates intensified their hedging efforts, they added. Dollar premiums closed at 4.10 percent for one month (3.88 percent on Thursday), 5.82 percent for three months (5.56), 7.30 percent for six months (7.00 percent), and 8.62 percent for 12 months (8.34).
Spot rupee opened at 42.49-61 and gradually weakened on corporate demand. "With fears of the Asian flu showing up again, most corporates want to stay covered," a public sector bank treasury official said. Late evening, inter-bank short covering pushed it further to the close. Dealers also reported off-market deals at 42.66. The RBI's mid-day reference rate was 42.55 compared to 42.49 on Thursday. Cash-tom was 0.5/1 paise, tom-spot was 0/0.5 paise, and cash-spot was 0.75/1.25 paise.
Corporate covering put downward pressure on the forward rupee and dollar premiums weakened by as much as seven to 22 paise across maturities.
Premiums (in paise) closed at: Aug - 8-10; Sep - 24-27; Oct - 50-55; Nov - 80-85; Dec - 112-117; Jan - 144-149; Feb - 176-181; Mar - 223-228; Apr - 246-251; May - 283-288; Jun - 317-322; Jul - 352-357. In the crosses, the rupee closed at 69.67 against the British pound, 24.03 against the German mark, and 29.25 per 100 Japanese yen.
