FOREX REPORT
The spot rupee staged a smart rally against the dollar in late evening trade yesterday following dollar sales by the State Bank of India (SBI) and other banks, foreign exchange dealers said.
It closed at 42.45-49 compared with 42.53-54 on Wednesday.
The forward rupee also firmed slightly in quiet trade, they added. Dollar premiums closed at: one-month - 7.45 per cent (7.68 per cent on Wednesday); three-month - 7.98 per cent (8.38 per cent); six-month - 8.49 per cent (8.83 per cent); nine-month - 8.84 per cent (9.17 per cent); 12-month - 8.94 per cent (9.34 per cent). Spot rupee opened at 42.55-57. Trade was quiet for most of the day and the rupee gradually appreciated to 42.50 level by late noon. But, late evening dollar sales by the SBI surprised the market and banks holding long positions, quickly off-loaded, causing the Indian unit's sharp rally.
Cash-tom was .5/1 paise, tom-spot 2/2.5 paise, and cash spot 2.5/3.5 paise.
The forward dollar premiums drifted southward on dull demand. Dealers only reported stray deals. Dealers reported a steady trickle of exporter remittances.
Premiums (in paise) closed at: September - 11-13; October - 40-43; November - 69-73; December - 98-103; January - 130-135; February - 161-166; March - 194-199; April - 229-234; May - 263-268; June - 297-302; July - 331-336; August - 365-372.
In the crosses, the rupee closed at 71.03 against the pound, 24.98 against the mark, and 31.61 per 100 yen.
