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Rupee holds firm against Fed-powered dollar; Rs 42.46/47

The rupee remained range-bound, but ended almost unchanged against the American dollar from the previous levels at the interbank foreign exchange market today.

The Indian unit opened at Rs 42.45/47 per dollar. It appreciated to Rs 42.42 on selling by select banks. However, demand from the banking sector, led by State Bank of India, lowered the rupee's value to Rs 42.46/47 at the fag end. The Indian currency had ended at Rs 42.45/46 yesterday.

Dealers said that forwards, too, experienced buying pressure, which allowed a rise in premium levels. Monthly premia (in paise) were 5-8 for November, 22-25 for December, 47-51 for January, 76-79 for February, 108-112 for March, 140-145 for April and 173-178 for May.

The six-month annualised premia ended at 7.78 per cent, while yearly premia closed at 8.30 per cent. Cash/spot ended at 0.75-1.00 paise and tomorrow/spot and cash/tomorrow at 0.25-0.50 paise.

In international markets, the dollar rose against most major currencies after the American central bank, the Federal Reserve, lowered interest rates in a bid to bolster the economy.

In the New York market, the dollar was quoted at 121 against the Japanese yen. The greenback also was changing hands at 1.6702 German marks. In the local market, rupee traded at Rs 71.05 against the pound sterling, at Rs 25.66 against the deutsche mark and Rs 35.04 against the yen.

The Reserve Bank of India fixed the reference rate at Rs 42.44 per US dollar.

UNI

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