FOREX REPORT
The rupee weakened against the dollar in the face of steady buying from the Reserve Bank of India (RBI) and the State Bank of India (SBI). It closed at 35.88-89. The forward segment was volatile. However, premiums strenghtened with the six month annualised closing at 7.75 per cent.
The rupee opened at 35.865-875. Corporate demand remained moderate. However, around late afternoon the RBI purchased dollars at 35.87, following which the SBI also started buying dollars at 35.88. The RBIs reference rate was 35.87. The cash-tom and tom-spot was level/.5 paise and the cash-spot was level/1 paise. The forward segment was choppy as premiums fell and rose alternatively with paying and receiving pressure. At the end of the day, they closed higher than on Monday. March and July were particularly active. The monthlty premiums in paise were 9-12 for February, 31-34 for March, 58-61 for April, 79-82 for May, 103-106 for June, 131-134 for July, and 150-155 for August.
Trading against the other major currencies remained dull and the rates held steady. The rupee stood at 58.63 against the pound, 22.08 against the dollar and 0.222 against the yen.On the cross-currency front, the dollar weakened against the pound to 1.6240 on account of the British economys strong manufacturing data indicating high productivity. The dollar also slipped against other currencies.
