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Rupee steady in a dull market

The market opened nearly steady at Rs 39.23-26 per US dollar. Due to the demand from the State Bank of India in the first session it went up to Rs 39.33 per, at this level it started booking profit which drifted the dollar lower to Rs 39.27-28.

Again, in the afternoon, the SBI bought dollars on behalf of their client and recovered it to Rs 39.32. At the fag end, the SBI and nationalised banks injected dollar into the system, which drifted it lower and it finished at Rs 39.25-27, leading dealers said.

However, the forward premium slid by 50 paise across the board since last three working day and six-month dollar declined by 14 per cent.

The six-month annualised premia was quoted at 13.84 per cent.

The cash to spot dollar opened higher at 2 per cent, but due to receiving pressure it came down to 1.50-2 per cent at close. The monthly forward premiums, in paise, were: 33-38 for March, 92-97 for April, 135-140 for May, 180-192 for June, 232-238 for July, 272-278 for August and 313-318 for September.

A good amount of export and import booking was done in cash and spot basis, while a marginal amount of export booking was conducted in near fowards basis in merchant section.

The world major currencies -- pound sterling was quoted at Rs 64.34, mark at Rs 21.59 and yen at Rs 30.68 in cross currency market.

The Reserve Bank of India fixed the reference rate for dollar at Rs 39.27.

UNI