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Rupee gains 10 paise till noon; Rs 42.46/48

The Indian rupee further strengthened by ten paise against the US greenback till noon on the interbank foreign exchange (forex) market.

Opening higher at Rs 42.48/52, the rupee moved down to Rs 42.55/57 level in the morning due to some dollar demand by corporates and banks, later around noon reversed and appreciated to Rs 42.46/48 against the previous closing level of Rs 42.56/58 with renewed dollar sales and lower demand.

The rupee is continuously appreciating from last Thursday following the announcement of some monetary measures by the Reserve Bank of India to check the slide of the rupee.

Forward premia continued to be at higher levels because of the hike in the repo and credit reserve ratio rate. The sixth month and yearly annualised premia were quoted slightly lower at noon around 12 per cent and 10.45 per cent respectively.

Cash/spot business were conducting between 2-3 paise premium at noon.

Meanwhile, the RBI has revised the reference rate for US dollar lower by nine paise at Rs 42.48 against Rs 42.57 of last Friday. In the domestic money market, the call rates opened higher at 10-12 per cent in the morning on good demand for funds by participants and lower supply, later eased to 8.50-8.75 per cent on better liquidity.

UNI