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Low demand, sale by corporates hit $ hard; rupee gains four paise, Rs 42.47/48

The rupee appreciated by four paise against the greenback on corporate dollar sales and absence of demand at the interbank foreign exchange market today.

Opening slightly higher at Rs 42.5050/5150, the rupee rallied up gradually to close at Rs 42.47/48 as against Rs 42.51/52 the previous day, showing a net gain of four paise.

Dealers said that a selling mood prevailed in the market and there was less demand for the US currency. As the rupee is stable, most operators were reluctant to take positions and stayed away from the market, dealers said, adding that the marketmen are watching the emergence of Euro currency and its impact in the forex market.

The forward market witnessed some activity in the morning pushing up the premiums slightly on paying pressure. Premia later came down on some receiving by banks. Near forwards premia were steady while far forwards moved up slightly by 2-3 paise.

The six month annualised and yearly premia were quoted at 7.28 and 8.19 per cent respectively.

Cash/spot and cash/tomorrow were not quoted due to the New York market being closed. No clearing at the Reserve Bank of India was taken up due to half-yearly closing of accounts.

The rupee appreciated marginally against pound sterling and deutsche mark while it declined against the yen. Sterling ended at Rs 70.43 (Rs 71.20), deutsche mark at Rs 25.35 (Rs 25.46) and yen at Rs 37.39 (Rs 36.90).

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 42.48 against Rs 42.54 of the previous day. The domestic call money market remained closed today due to the RBI's half-yearly closing of accounts.

UNI

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