FOREX REPORT
The rupee staged a nine paise recovery against the dollar to close at 36.58-60 following aggressive RBI intervention, reduced corporate demand, and exporter selling. Forward premiums slipped sharply with the six-month closing at 7.37 per cent and the one year at 7.79 per cent.
The spot rupee opened at 36.64-66 and within minutes slipped to the 36.72 levels. The RBI entered the market selling an estimated $300million-$400 million and the rupee recovered to 36.68. The RBI had to maintain its intervention right through the afternoon. Reduced corporate demand and exporter selling gave the apex bank intervention a shot in the arm. At one point the rupee was as strong as 36.55.
Cash-tom and tom-spot were .25/.5 paise and the cash-spot was .25/.75 paise.
Forward premiums slipped sharply with the near term coming off by three paise and the further forwards by as much as 35 paise. Market sources feel there is a perception that the rates may be bottoming out.
Monthly premiums in paise closed at 14-17 for September, 40-43 for October, 57-62 for November, 85-90 for December, 109-114 for January, 127-132 for February, 147-152 for March, 171-176 for April, 203-208 for May, 228-233 for June, 253-258 for July, and 275-280 for August.
In the crosses, the rupee closed at 58.1 against the pound, 20.13 against the mark, and 30.84 per 100 yen.
