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Rupee loses by 4-5 paise

The market opened nearly steady at Rs 38.85-87 per US unit, and remained at same level till the midsession. Later, in the afternoon session, the State Bank of India entered in the market and bought a nominal amount of dollar to make up the position, which drifted the dollar higher to Rs 38.87-89 and it was hovering at that level for rest of the day.

Finally, it closed at Rs 38.88-89, leading forex dealers said.

The forward premiums remained constant at previous level, cash to spot was quoted at 1.75-2 paise premium. The six-month foward premium in paise are 1-2 for February, 50-51 for March, 110-112 for April, 157-160 for May, 205-208 for June, 254-258 for July, 290-294 for August and 329-334 for September.

Only nominal amount of export booking was conducted in cash to spot basis, and some forward contract were booked in merchant section, dealers said.

The cross currency market also remained steady as a meeting of G-7 countries will be held on Saturday and traders are waiting for its outcome. They were also cautious due to the possible Iraq-America conflict.

The pound sterling was quoted at Rs 63.72, Deutsche Mark at Rs 21.41 and Japanese yen at Rs 30.83.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 38.87 as against Rs 38.86 on the last working day.

UNI