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Rupee drops by 10 paise

The rupee began the day at Rs 39.51-54. Demand from the corporate sector and banks caused the US dollar to gradually go up to Rs 39.54-56. At that level sellers entered in the market, injecting considerable amount of dollar, and arrested the further downfall of the Indian currency.

As soon as the sellers took off from the market, the State Bank of India hit the market and purchased sizeable amount of dollars on behalf of its client to meet its remittances, which saw the dollar drift up to Rs 39.62-63 before closing down to Rs 39.60-62, leading forex manager said.

Another dealer said during the last two working days, heavy supply was received and today was the buyers' day as only few sellers were seen in the market.

The Reserve Bank of India paid in near forward and far forwards which maintained the premiums rates in the swaps section.

Hardly a one or two paise movement was witnessed in the swaps section. The cash to spot dollar was traded at 0.5 paisa premium. The monthly premiums quoted in paise are: 2-4 for April, 17-19 for May, 38-40 for June, 60-62 for July, 89-92 for August, 119-122 for September, 146-149 for October and 173-177 for November.

The six-month annualised premia was traded at 6.9 per cent.

No booking was conducted in cash to spot basis, while only a nominal amount of export booking was done in far forwards in the merchant section.

Being a Easter holiday in some of the international markets, the cross currencies rates remained nearly steady. The pound sterling was quoted at Rs 66.13, mark at Rs 21.67 and yen at Rs 30.54 per 100 yen.

The apex bank fixed the reference rate for US dollar at Rs 39.54 as against Rs 39.51 on the last working day.

UNI