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Rupee gains as dollar weakens against world currencies

The Indian rupee appreciated by about 14 paise against the US greenback, as weakening of the dollar against most world currencies changed the market sentiments on the interbank foreign exchange (forex) market today.

The rupee opened steady at Rs 42.27/30 per US dollar, declined to the low of Rs 42.40/43 in the mid-morning, shot up to the high of Rs 42.05/10 in the afternoon and eased slightly in the end to close at Rs 42.14/17 against the previous close of rs 42.28/30.

Dealers said that slide of the US currency in most of the countries has some impact in the market. Though State Bank of India was not active in the market, corporates were selling huge amount of dollars following reports of the weak dollar.

However, forward premia, especially far forwards, went up on hectic imports covering by banks and corporates.

The sixth month annualised premium and yearly premium were quoted at 12.33 per cent and 11.26 per cent respectively.

Heavy import booking was conducted in far forward dollars. The cash/ spot business was conducted between 2 and 2.50 paise premium, while cash/TOM was done at 1-1.25 paise premium.

The monthwise premia in paise were June 16-19 paise, July 70-75 paise, August 113-118 paise, September 155-157 paise, October 190-195 paise, November 235-240 paise, December 270-277 paise, January 310-317 paise, February 350-357 paise, March 390-397 paise, April 422-430 paise, and May 450-460 paise.

Most of the Asian currencies strengthened today against the US greenback, reacting to a stronger yen and speculation that Washington will step in to prop it up further.

The rupee remained almost steady against pound sterling and deutsche mark while it weakened slightly against Japanese yen and quoted Rs 69.63 for sterling, Rs 23.43 for DM and 29.60 for yen.

Meanwhile the RBI has fixed the reference rate for dollar higher at Rs 42.25 against Rs 42.37 of the previous day.

UNI