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Forward premia fare well on buying pressure; rupee loses three paise, Rs 42.55/57

The Indian rupee depreciated by three paise against the American greenback in the range-bound trading on the interbank foreign exchange (forex) market in Bombay today.

The Indian unit opened almost steady at Rs 42.53/56 against the previous close of Rs 42.5325/5425, hovering at the same level during most part of the day on poor demand for dollar from corporate sectors and banks, finally closed at Rs 42.55/57. On the contrary, the forwards premium improved moderately on good buying pressure.

A leading private commercial forex manager said, ''There was some action in the forward dollar, but range-bound trading was observed in the spot dollar.''

State Bank of India was bidding both ways but not aggressively, dealers added.

Meanwhile, the Reserve Bank of India has fixed the reference rate at Rs 42.55 as against Rs 42.56 of last working day.

The far-forward premium rose moderately on buying pressure from the importers. The cash-to-spot dollar was traded between 0.25 and 0.50 paise premium and cash to tom was quoted at 0.75 paise premium.

The annualised basis premia , the monthly premium in per cent for the first month annualised basis premia was traded 4.96, third month at 6.51 and sixth month was at 7.83. The month-wise premium in per cent were 14-15 for August, 34-36 for September, 63-66 for October, 95-98 for November, 128-131 for December and 161-164 for January.

In the overseas market, Indian rupee traded higher at Rs 69.15 (Rs 69.67) against pound sterling, Rs 23.84 (Rs 23.91) against deutsche mark and Rs 29.24 (Rs 29.46) against Japanese yen.

A nominal amount of export and import booking was conducted in cash-to-spot basis while marginal amount of export booking was done in near and far-forward basis in the merchant section.

UNI

UNI