The rupee remained steady against the dollar in a quiet inter-bank forex market yesterday. In the forwards segment, rumours about Reserve Bank of India (RBI) Governor C Rangarajan making a statement to the effect that interest rates would come down, saw premiums come-off. The six month annualised closed at 7.65 per cent.
The spot market was dull with only moderate corporate buying. The rupee opened at 35.865-875. There were some good supplies from remittances. During the last ten minutes of trading, the RBI bought at 35.87 levels which was also its reference rate for the day. The cash-tom was .25/.75 paise, the tom-spot was .25/.5 and the cash-spot was .25/1.25 paise. The forward premiums weakened in response to market rumours of a drop in interest rates. Banks started receiving against the foreign currency funds putting a downward pressure on the premiums.
The monthly premiums in paise were 9-12 for February, 30-33 for March, 55-58 for April, 76-79 for May, 101-104 for June, 128-131 for July, and 150-153 for August.
On the cross-currency front, the dollar strengthened against other major currencies as the US Federal Open Market Committee met yesterday. Expectations of a rise in the US interest rate are rife. This saw the rupee also strengthen against other currencies. The rupee closed at 57.68 against the poundand 21.58 against the mark.
