FOREX REPORT
The rupee remained fairly steady against the dollar, showing only a one-paise movement in the inter-bank forex market yesterday. It closed at 35.85-86. The forward premiums slid slightly in the face of some receiving pressure, with the six-month annualised premium closing at 7.2 per cent.
Traders described the spot market as dull, with barely routine activity being observed. The rupee opened at 35.8425-8525. Buying and selling activity was only nominal with limited corporate demand. The SBIwas not noticed in the market. The RBI entered the market later in the day to purchase the greenback at between 35.855 to 35.875. Dealers said the RBI intervened to prevent any undue appreciation of the rupee, as well as to shore up its reserves for the redemption of the second tranche of the India Development Bonds slated for February 15.
The tom-spot was -.25/.50 paise, the cash-tom was -.25/.50 paise and the cash-spot was -.5/.5 paise. In the forwards segment, banks reported some receiving pressure, including booking by exporters, particularly for March, April and May.
The premiums slipped across the board by one to four paise. The monthly premiums in paise were 0-2 for January, 11-14 for February, 32-35 for March, 60-63 for April, 81-84 for May, 105-108 for June, and 130-133 for July. The one-year forward premiums were 265-285 paise.
