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Rupee up 14 paise against $

The rupee strengthened further by 14 paise against the US greenback, on heavy import cancellation in view of the month-end, on the interbank foreign exchange market today.

Importers cancelled their earlier booked contracts at higher levels and today being the last day of the month, are the main reasons for the rupee firming up, dealers said adding that the US currency was not much in demand. Though SBI was only issuing quotes, exporters and corporates have sold the US dollars.

The rupee opened slightly higher at 42.50/53, moved only in upward direction and closed at 42.38/40 as against 42.52.54 of the previous day.

The forward premiums also came down by 2-3 paise on export covering and import cancellation. The sixth month annualised and yearly premium were quoted lower at 9.98 and 9.96 per cent respectively.

The cash/spot business could not be conducted today in view of the RBI year-ending day. The month-wise premiums in paise were for July 35.40, August 68-74, September 103-108, October 137-142, November 171-175, December 195-210, January 245-248, February 281-286, March 321-323, April 356-365, May 380-387.

The RBI has fixed the reference rate for US dollar at Rs 42.47 today against Rs 42.56 the previous day.

At the overseas market, the pound sterling weakened, Japanese yen strengthened, while the Deutschemark remained almost steady against the US currency. The rupee appreciated against sterling, DM and yen and quoted Rs 70.45 for sterling, Rs 30.28 for yen and Rs 23.43 for DM.

The rupee has appreciated by 43 paise against the dollar from last Wednesday on favourable news like finance minister's indication of RBI intervention in the market, sanction of World Bank loan, and the government's sincere efforts to induce the FIIs.

FIIs who were unloading heavily in the capital markets, have started buying shares in the current week. The worst seems to be over and the rupee is stabilising slowly, dealers added.

UNI