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SBI receiving stands out in dull market, rupee 42.52/54

The Indian rupee ruled steady against the American greenback in a quiet and dull trading while forward dollar premia came down marginally at the interbank foreign exchange (forex) market today.

The rupee opened at 42.54/46, traded at Rs 42.56/58 for some time and ended at Rs 42.52/54 against the previous close of Rs 42.54/55 per dollar.

Besides State Bank of India's receiving in the forwards, particularly in the November and December premia, hardly any activity witnessed in the market today, said a forex dealer at a leading private commercial bank.

Market participants could not understand SBI's continuous receiving in the forwards, and so they preferred to be quiet in view of further direction, said a senior dealer at another leading bank.

The SBI also participated in the spot trading but it was not active, dealers added.

The Reserve Bank of India has maintained the reference rate at Rs 42.56 per dollar.

On an annualised basis, the monthly forward premiums in per cent for the first month closed at 4.43 (4.69), the third month premium ended lower at 6.20 (6.48), six-month premium finished at 7.30 (7.53) and yearly premia closed at 8.43 from yesterday's 8.63 per cent.

Monthly forward premium in paise were closed for July at level 0.50, August at 15-17, September 36-39, October 65-68, November 95-97, December 123-126, January 155-158, February 185-188, March 221-224 and April 255-258.

In the overseas market, Japanese yen reported slight recovery against the US dollar in the late trading.

Meanwhile, in the cross currency deals, the Indian unit closed higher at Rs 70.28 per British pound against Monday's close of Rs 70.53. The rupee closed at Rs 23.83 against deutsche mark from the previous close of Rs 23.88 while it finished at Rs 29.96 against yen as against the previous close of Rs 29.88.

UNI

UNI