COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Renewed demand pushes rupee down two paise; Rs 42.58/59 vs $

The rupee ended nearly two paise lower against the greenback on renewed dollar demand at the interbank foreign exchange market today.

Opening steady at Rs 42.5650/5750, the Indian currency came under pressure and eased to Rs 42.58/59 in the morning due to some dollar demand from corporates and banks. Later, it rose slightly around mid-session as corporates started unwinding their long position at the morning's higher levels.

However, fresh dollar buying by the corporates for their import requirements pushed down the rupee again in the afternoon and closed at Rs 42.58/59 against Rs 42.5650/5750 of the previous day.

Forward premia, moving slightly, tracking the spot rupee, ended marginally lower in the absence of paying pressure and scattered receiving. The annualised premium for one month, three-month, six-month and one year ended a bit lower at 4.82 per cent, 6.13 per cent, 7.44 per cent and 8.42 per cent.

Meanwhile, the Reserve Bank of India maintained its reference rate for the US dollar at Rs 42.58.

The cash spot was traded between 1.25 paise to 1.50 paise premium.

The monthly premia in paise closed at December 7-9, January 27-29, February 50-53, March 80-83, April 112-115, May 140-146, June 174-177, July 200-211, August 240-245, September 274-279, October 307-312 and November 340-345 paise premium.

In the overseas market, the US dollar slightly weakened against the pound sterling, deutsche mark and Japanese yen.

In the cross-currency trading, the rupee closed lower against pound sterling, deutsche mark and Japanese yen at Rs 70.76, Rs 25.63 and Rs 36.23 against the previous close of Rs 70.49, Rs 25.49 and Rs 36.06 respectively.

The call rates closed marginally lower at 8.10-8.20 per cent at the local interbank call money market. Opening steady at 8.00-8.10 per cent, it remained at that level most part of the day but at the fag end on some demand from certain participants it rose to 8.10-8.20 per cent.

UNI

Business news