FOREX REPORT
The rupee continued to strengthen against the dollar in the inter-bank forex market yesterday closing at 35.86-865. The forward segment eased with the six-month annualised closing at 7.63 per cent.
The spot market moved one way with the rupee steadily strengthening. It opened at 35.87-88. Supplies were good as there were some inflows from foreign institutional investors. Besides, there was some panic selling by exporters who are anticipating a further downward slide in the rates.
However, corporate demand was nominal. The Reserve Bank of India came into the market, though not in a big way, picking up at 35.8625 whatever quantum banks sold to it. The State Bank of India was not noticed in the market yesterday.
The cash-tom was -.25/.75 paise, the tom-spot was -.5/.5 paise and cash-spot was .5/.5 paise.
The forward market saw premiums ease further as there was some receiving pressure. Monthly premiums in paise were 19-22 for March, 46-49 for April, 66-69 for May, 86-89 for June, 112-115 for July, 134-137 for August and 155-158 for September. The one-year premiums were 259-279 paise.
Overseas, the dollar slipped against the yen and the pound but remained steady against the mark. The rupee closed at 58.69 against the pound, 21.42 against the mark and 29.64 per 100 yen.
