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Rupee ends slightly lower after initial gains

The Indian unit opened at Rs 42.63/68 and further appreciated to Rs 42.50/52, registering an initial gain of 17 paise over the previous close. But some panic dollar buying by exporters mainly at the fag end of trading, pushed down the rupee to Rs 42.68/73 level, forex dealers said.

Dealers also attributed short covering by some banks for the weakening of the rupee from the intraday level. The State Bank of India was seen issuing in two way quoted however, it has not made any aggressive attempt either for in buying of selling dollars, they said.

Cash-spot business business was done between 2 and 2.75 paise premium.

The forward premia came down further with the six-month annualised premium closed lower at 11.13 per cent against yesterday's level of 11.53 per cent. The yearly annualised premia closed at 10.62 per cent from 11.15 per cent yesterday.

The Reserve Bank of India today fixed the reference rate at Rs 42.60 per dollar, higher by 11 paise from yesterday's rate of Rs 42.71.

The monthly forward premiums were closed at 43-46 paise for July, 82-87 paise for August, 123-127 paise for September, 156-161 paise for October, 195-200 paise for November, 235-240 paise for December, 272-280 paise for January, 310-320 paise for February, 350-360 paise for March, 385-395 paise for April, 415-425 paise for May, and 445-455 paise for June 1999.

In the overseas market, the dollar remained nearly steady against the yen after hectic development reported for last couple of days, dealers said. In cross currency deals, the rupee closed at Rs 71.23 per pound from yesterday's close of Rs 71.16. The Indian unit finished at Rs 23.76 against the mark from the previous close of Rs 23.72, while it closed at Rs 30.29 against 100 yen from the yesterday's close of Rs 30.51 per 100 yen.

UNI