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Forward Premiums
JANUARY 31: Forward premiums moved a shade on Monday tracking a weaker spot rupee at 43.6325 levels. The six-month annualised forward cover was seen at 3.20 per cent compared with its weekend's 3.13%. "Forward premiums inched up a bit on paying pressure as corporates covered forward loan liabilities", a dealer with a US-based bank said. "A state-run firm made a loan repayment today, which went through the market. But that was in the morning, trade was very quiet in the afternoon," a dealer said, adding: "Corporates were hedging foreign loans in the near term maturities up to six months".In the near-terms, February and March dollars ended at 11/12 paise and 23/24 paise respectively, while in the far forwards, June ended at 55/57 paise and July at 68/69 paise. "Premiums softened by close of trades with the spot rupee closing at 43.6250/6350... earlier in the day, it was felt that it will touch the 43.65 mark", a dealer with a European bank said. FORECAST: Forward premiums seen higher on Tuesday. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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