FOREX REPORT
The rupee slipped to a 21-month low of 36.75 against the dollar but recovered to close at 36.69-71. The Reserve Bank of India (RBI) intervened throughout the day, selling around $300 million in spot and another $200 million in forward. Forward premiums came off sharply with the six-month closing at 7.14 per cent and the one-year at 6.76 per cent.
Spot rupee had opened marginally weaker, at 36.65-67, as against Tuesday's close of 36.63-64. Sustained corporate demand for the greenback pulled the rupee down to 36.75 despite RBI intervention. Only by evening, the market realised that RBI meant business. Speculation slowed down and rupee recovered to 36.65-67, but late evening SBI buying pulled it down to close levels.
Cash-tom was .25/.75 pasie, tom-spot was 1.25/1.75 paise and cash spot was 1.5/2.5 paise. Forward premiums initially went up but came down by 10-20 paise after intervention by the apex bank. Monthly premiums (in paise) for the year closed at 5-8 for November, 29-32 for December, 53-56 for January, 75-78 for February, 98-101 for March, 118-121 for April, 138-141 for May, 159-162 for June, 178-181 for July, 198-201 for August, 216-219 for September, 235-238 for October, and 255-258 for November.
In the crosses, rupee declined to close at 62.72 against the pound, was steady at 21.42 against the mark, and appreciated against the yen to 29.15 per 100 yen.
