FOREX REPORT
The rupee closed at 39.52-54 to the dollar against the previous close of 39.49-51.
One month premiums closed at 11.04 per cent (11.69 per cent on Thursday), three month at 10.29 per cent (11.13 per cent), six month at 10.40 (11.01 per cent), and one year at 10.38 per cent (10.78 per cent).
The spot rupee opened at 39.46-48. The foreign exchange market has more or less discounted the political developments at the Centre. The spot rupee has not reacted to the fact that the BJP will form a government.
With the possibility of call money rates moving up not ruled out, because of tax outflows, there exists the likelihood of premiums inching up unless the SBI is in the market receiving.
However there exists ample surplus funds in the banking system.
Yesterday cash tom was 0.5-0.75 paise, cash spot was 1-1.50 paise and tom spot was 0.50-0.75 paise.
Monthly premiums (in paise) closed at 13-15 for March, 50-55 for April, 80-85 for May, 112-117 for June, 143-148 for July, 182-187 for August, 217-222 for September, 253-258 for October, 283-288 for November, 323-328 for December, 357-364 for January 1999 and 390-395 for February 1999.
In the crosses, the rupee closed at 66 against the British pound, 21.71 against the German mark, and 30.49 per 100 Japanese yen.
