Rupee ranged in sparse trading Spot rupee appeared reluctant to come to work on Monday and traded in a lacklustre range before firming a tad by the close. The Indian unit opened at 47.12/13 and firmed by a paise to 47.11/1250 where it hovered for most of the session. Bunched up dollar supplies were largely mopped up by the state owned banks and spot closed the day at 47.1075. Despite the cut in lending rates by SBI over the weekend, forwards did not move appreciably lower. The six-month forward closed at 4.71% compared to Friday's close of 4.73%. Call closed comfortably below the 7.00% level amid easy liquidity. The BSE Sensex ended flat at 3330, a gain of a mere 4 points after having hit a high of 3356. Majors ranged; Dow plunges The major currency pairs traded in a tight range on Monday despite a fair raft of economic data. Euro managed to hold on to the 88 cents level ignoring a 2.5% fall in German June manufacturing orders. USD/JPY breached the 124.00 mark initially to hit 124.27 before giving away the gains to close out at 123.86. Cable was the only loser in the day closing at 1.4195 as compared to Friday’s 1.4284. Despite a rise in UK June manufacturing output, the sentiment for Cable seems to have been hurt with the British manufacturing sector officially slipping into recession during the second quarter. The Dow crashed by 112 points to 10401 after some negative comments from Intel and ahead of Cisco’s earning report today. The Nasdaq was down 32 points to 2034.

Interbank Indian Rupee Markets Rupees per dollars Spot 1 Month 3 months 6 months 12 months Bank Sells at 47.1200 47.2988 47.6737 48.2683 49.3981 Bank Buys at 47.1120 47.2842 47.6507 48.2400 49.3801

FxForwards Percentages   1 Month 3 Months 6 Months 12 Months USD Libor 3.72 3.65 3.66 3.82 Forward Premium 4.47 4.64 4.83 4.82 Implied Deposit 8.19 8.29 8.49 8.64 Sovereign Zero Coupon 7.33 7.34 7.36 7.39 Arbitrage -0.86 -0.95 -1.13 -1.25

Source: Mecklai Financial Services

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