FOREX REPORT
The rupee appreciated marginally against the dollar in the inter-bank forex market despite purchases by the Reserve Bank of India (RBI) and State Bank of India (SBI). It closed at 35.78-79. The forward premiums strengthened slightly following expectations of higher call rates. The six month annualised closed at 4.9 per cent.
The spot rupee opened at 35.795-80. Although the RBI and SBI made selective purchases, the rupee remained steady. In fact, selling pressure during the day, saw the rupee touch an intra-day high of 35.785. Buyers kept out of the market. Inflows continued from exporters and foreign direct and institutional investors. The cash-tom was 0/.25 paise, the tom-spot was .5/.75 paise and the cash-spot was .5/.75 paise.
In the forwards segment, the forward dollars climbed up slightly following the announcement of a government auction of Rs 3,000 crore in the money markets. Callsare expected to tighten leading to squeezing of the forward premiums.
Monthly premiums in paise were .75-1 for May, 10/11 for June, 25-26 for July, 40-42 for August, 56-58 for September, 74-75 for October, and 86-88 for November. One-year premiums were 165-175 paise.
Overseas, the dollar slipped against other major currencies . The rupee closed at 59.30 against the pound, 21.24 against the mark and 31.37 per 100 yen.
