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Rupee gains five paise

The Indian unit strengthened by five paise against the American greenback following dollar selling by corporates and banks in the afternoon session of the Interbank foreign exchange market here today.

The rupee opened steady at Rs 42.55/57, hovered in the range of Rs 42.53/56 most part of the day. In the morning good buying demand for dollar from the major market player the State Bank of India and corporates, the Indian unit weakened marginally to Rs 42.56/57.

Later, hectic selling activity from corporates and banks strengthened the rupee to Rs 42.50/52 at the fag end of the day, against the previous close of Rs 42.55/57, leading dealers said. They added that the SBI was did business both ways.

Cash to spot business was done between 0.25 to 0.50 paise premium and cash to tomorrow was quoted at around 0.25 paise premium.

The Reserve Bank of India has maintained the reference rate at Rs 42.55 per US dollar.

The forward dollar came down on hectic receiving pressure from importers. On an annualised basis, the monthly premium in per cent for the first month annualised basis premia traded at 4.56, the third month at 6.02 and sixth month was at 7.44 while the annualised premia was quoted at 8.50 per cent. The monthwise premium in per cent were 11-13 for august, 31-34 for September, 57-60 for October, 87-90 for November, 120-123 for December and 152-155 for January.

In the overseas market, rupee lower against pound sterling Rs 69.32 (69.15), marginally higher against deutsche mark (Rs 23.83 against the earlier Rs 23.84) and crashed against the Japanese yen (Rs 29.35 in comparison to Rs 29.24 earlier). In the merchant section, a nominal amount of export and import bookings were conducted.

UNI