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Rupee up by 6 paise, courtesy State Bank

The market opened nearly steady at Rs 38.79-84. The statement of State Bank of India Chairman M S Verma that most of the commercial banks will cut their prime lending rates within six weeks and the Indian currency will touch Rs 40, reflected on the forex market, which moved the dollar further up, during the day.

During midtrading it rose further and recorded day's high of Rs 38.86. The SBI started booking profits at higher level which strengthened the Indian rupee to Rs 38.72-73 at close, dealer said.

Due to nominal cancellation of export booking, forward premiums improved by 10 paise as compared to yesterday's close, dealers added.

The six-month annualised premia was quoted at 14.35 per cent. The cash to spot dollar was quoted at 1-2 paise premium, the monthly forward premium in paise were 17-18 for February, 70-71 for March, 134-135 for April, 174-175 for May, 221-223 for June, 262-265 for July, 300-305 for August and 338-343 for September.

A nominal amount of export and import booking was done in cash and spot basis, marginal booking of export was conducted in near forwards.

The Reserve Bank of India has fixed the reference rate for the US dollar at Rs 38.79 as against Rs 38.74 on the last working day.

The other major currencies were traded -- pounds sterling at Rs 63.07, mark at Rs 21.29 and yen at Rs 31.18 (per 100) -- in the cross currency counters.

UNI