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Rupee gains further

The Indian unit opened nearly steady at Rs 38.73-78 and closed at Rs 38.67-70 per dollar as against its previous close of Rs 38.74-76. Due to lack of demand from corporate sectors and banks, it was hovering the same level till mid-trading session.

In the afternoon trading, market player the State Bank of India entered the market and injected nominal amount of dollar which strengthened the Indian rupee to 38.61-65. At the fag-end, the rupee lost the intraday gain due to profit booking by SBI and it closed at Rs 38.67-70, leading dealers said.

The forward premiums improved marginally on the Reserve Bank of India's intervention in the market during the first phase of trading. The central bank intervened in the month of March and June, dealer added.

The cash to spot dollar opened at 2.5-3 paise premium and closed at 1.5-2 paise premium. The forward monthly premium in paise were 26-31 for February, 90-100 for March, 160-170 for April, 190-210 for May, 245-265 for June, 285-305 for July, 315-335 for August and 355--375 for September.

Nominal booking was witnessed in export and import counters in cash and spot basis, while marginal booking of export was conducted in the near-fowards in the merchant section.

Range-bound trading was observed in the cross-currency section. The dollar weakened against most of the world currencies. The pound sterling was quoted at Rs 63.72, yen at Rs 31.22 (per 100) and mark at Rs 21.58, dealers said.

Meanwhile, the Reserve Bank of India fixed the reference rate for dollar at Rs 38.75.

UNI