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SBI buying pushes rupee down six paise; Rs 42.55/56

The Indian rupee depreciated by six paise against the American greenback following aggressive buying by State Bank of India towards the fag end of the session at the interbank foreign exchange market today.

The currency opened at Rs 42.48/52, showing a wide range, drifted lower to Rs 42.56 during the course of the trading, and finally ended at Rs 42.55/56 per dollar, against the previous close of Rs 42.48/50.

The greenback was in the good demand by the market player, SBI, which entered the market twice during the day for purchases, senior dealer at the Mecklay and Mecklay Financial Services said and added that SBI might have bought dollars on behalf of the government's month-end remittances. Besides, a few cancellation of import bookings carried on in the merchants section, dealers said.

The Reserve Bank of India has maintained the reference rate at Rs 42.53 per dollar.

Cash/spot business was done at 1.00-1.25 paise premium in view of four days' transaction, the dealer explained.

In the forwards, the near forwards ruled nearly steady while far fowards rose marginally due to paying pressure.

There was not much demand for the dollar from corporates, another dealer said.

On an annualised basis, the monthly premium in per cent for the first month closed at 4.45 (4.40), the third month premium ended lower at 5.24 (5.83), six month premium closed at 7.18 (7.05) and 1-year premia finished lower at 8.31 against yesterday's level of 8.36 per cent.

Monthly forward premiums in paise were closed for August 13-15, September 34-37, October 58-61, November 89-92, December 118-122, January 149-153, February 179-183. March closed at 214-218 (212-217), April 247-251 (248-252) paise premium respectively.

In the overseas market, the US dollar eased marginally against deutsche mark and it ruled nearly steady against pound sterling and Japanese yen. In the local market the rupee was traded in the range of 42.5000/55000, the pound sterling at Rs 69.8800/8400, deutsche mark at Rs 24.0200 and 24.0500 while the Indian unit moved in the range of Rs 29.9000 and Rs 29.9800 against the Japanese yen (100 yen).

UNI