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Dull trading keeps rupee down at 42.54/55

The Indian rupee ended slightly lower against the US dollar in a dull and quiet trading at the interbank foreign exchange (forex) market in Bombay today.

The Indian unit opened at Rs 42.53/54, traded in a narrow range of Rs 42.53/54 and Rs 42.54/55 throughout the day. The currency closed at Rs 42.54/55 against Friday's close of Rs 42.51/53 showing a one paise decline against the American greenback.

There was not much movement, in the absence of market moving factors, dealers said and added that activity in the forwards were also very limited in the fear of possible receiving by SBI or RBI if there is paying pressure, said a chief forex dealer of a leading private commercial bank.

Besides its normal banking activity, the market player SBI did not took aggressive participation, the dealer said.

Cash-spot business was done between 0.25 - 0.50 paise premium.

The Reserve Bank of India has fixed the reference rate at Rs 42.56 per dollar as against Friday's rate of Rs 42.53.

On an annualised basis, the monthly forward premium in per cent for the first month closed at 4.69 (4.79), the third month premium ended at 6.48 (6.48), sixth month premium at 7.53 (7.55) and yearly premium closed at 8.63 against 8.48 per cent.

Monthly forward premiums in paise were closed for July at level - 01, August 16-19, September 39-43, October 68-73, November 99-04, December 129-135, January 160-165, February 190-195, March 228-233 and April 262-268.

In the overseas market, the Japanese yen weakened marginally against the US dollar while the deutsche mark and pound witnessed range-bound trading against the dollar, dealers said.

In the cross currency market, the rupee ended at Rs 70.53 per pound against Friday's close of Rs 70.25. The Indian unit closed at Rs 23.88 (23.83) against d-mark and finished at Rs 29.88 (30.27)) against Japanese yen.

UNI