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Rupee loses 5 to 7 paise

The Indian unit opened nearly steady at Rs 38.73-76 per US dollar and was hovering at same level for most part of the day. At the fagend, market player SBI and corporate sectors bought good amount of dollars which weakened the Indian rupee to Rs 38.80-83 before closing at Rs 38.78-82, leading dealers said.

The State Bank of India chairman today said that Indian commercial banks will cut their prime lending rate within six weeks. He also said the Indian currency will cross Rs 40 per dollar, but it will not not reach the Rs 50 level.

The forward premium declined marginally due to no paying pressure from Reserve Bank of India. The cash to spot dollar was quoted at 0.5-0.75 paisa premium, spot/tom was at 0.25-0.5 paisa premium. The monthly forward premiums in paise were 17-18 for Feb, 65-68 for March, 123-128 for April, 167-172 for May, 210-215 for June and 260-265 for July.

The RBI has fixed the reference rate for the dollar at Rs 38.74 as against Rs 38.73 on the last working day.

The RBI has also quoted the exchange rates of the cross currency -- pound sterling at 1.5831, mark 4.6878 and yen at 319.39.

Good export bookings were observed in the cash and spot basis, while importers adopted a wait-and-watch role in the merchant section.

UNI