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Rupee holds steady

It opened lower at Rs 41.72/73, the rupee declined further to touch a record low of Rs 41.83/84 level as the panic dollar buying by corporate and banks to cover up their posiion continued till midsession, and later strengthed slightly to close Rs 41.69/72 as against the previous close of Rs 41.68/69.

The State Bank of India stayed away from the market till midday. The market player entered the market in the afternoon, and sold dollars for some time, which helped the rupee to recover partially. Nominal amount of merchant booking was conducted in near forward dollars by importers while exporters sold enough spot and forward dollars, leading dealers said.

The six-month annualised premium and yearly premium was quoted lower at 8.55 and 8.70 per cent as compared to the previous quote of 9.11 and 9.04 per cent. Forward premiums fell down by about 8 paise. Cash/spot business was conducted at 0.25-0.50 paise premium while cash/tom was done at level to 0.25 paise.

The monthwide premium in paise were June 20-23 (28-31), July 51-54 (57-61), August 82-85 (90-94), September 113-117 (120-125), October 146-149 (155-160), November 175-179 (186-190) and December 207-211 (219-223).

In other world major currencies, the rupee weakened against pound sterling and mark while against yen it slightly strengthened and quoted Rs 68.05 for sterling, 23.45 for DM and Rs 29.90 for 100 yen.

The Reserve Bank of India fixed the reference rate for US dollar at Rs 41.79 against Rs 41.50 of the previous day.

UNI