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Rupee declines by about 10 paise

The market opened at Rs 38.77-79 per US dollar. The SBI bought the dollar twice during the day on behalf of their client to square up the position, leading dealers said and added that some forex centres were closed due to the elections in some part of the country including Delhi, Tamil Nadu.

There was shortage of dollar in the market which was an another reason for the weakening of the Indian currency.

Around the afternoon session, the SBI purchased the dollar in the range of Rs 38.82-83 and remained at this level for quiet some time. At the fag end, SBI again bought considerable amount of dollars which slid the Indian currency further to Rs 38.85-87, they added.

The election fever gripped the forex market, as dealers kept themselves away from the market.

The forward premium declined moderately during the first session of trading. Later, due to paying pressure from the nationalised bank, it recovered marginally, but, remained lower as compared to previous level.

The tom/spot dollar was quoted at 0.25-0.5 paisa premium. The monthly forward premium were quoted in paise were: 5-7 for February, 45-47 for March, 103-106 for April, 144-147 for May, 187-190 for June, 229-232 for July, 260-263 for August and 300-310 for September.

Nominal amount of export and import booking was done in cash to spot basis in merchant booking.

Range-bound trading was witnessed in the cross-currency market. The world major currencies quoted per Rs 100 were pound sterling at 1.5707, Deutsche mark at 4.6921, and Japanese yen at 324.7808.

The Reserve Bank of India's reference rate for the dollar is Rs 38.83 as against Rs 38.80 on the last working day.

UNI