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As long-term $ positions ease, rupee gains; four paise up, Rs 42.42/43

The Indian rupee appreciated by four paise against the greenback on liquidation of long-term dollar position by corporates and leading commercial banks today.

The Indian unit opened at Rs 42.45/47, touched the day's high of Rs 42.47/48, but strengthened in the afternoon when the market witnessed dollar selling by leading commercial banks, dealers said.

The market participants thought that the rupee may go down further and have made heavy buying during last three days, but when they saw that there was no sign of rupee's going down further, they turned sellers, said the chief forex dealer at a leading private commercial bank.

The rupee quoted at Rs 42.4150 in the late afternoon and finally closed at Rs 42.42/43, showing a gain of four paise from the previous close of Rs 42.46/47.

Cash-spot dollar quoted at 1.50-2.00 paise premium. The forward premia in paise were closed 3-4 for November, 20-22 December, 44-47 January, 72-76 February, 103-108 March, 136-141 April and 169-172 for May.

Half-yearly annualised premia in percentage was quoted at 7.74 per cent while one yearly premia closed at 8.40 per cent.

In the cross currency deals, the Indian rupee too appreciated against pound sterling and deutsche mark while it lost moderately against Japanese yen.

The rupee ended higher at Rs 70.73 per pound from the previous close of Rs 71.05 and Rs 25.33 against deutsche mark from the previous close of Rs 25.66. The Indian unit, however, closed lower at Rs 35.60 against Japanese yen from the previous close of Rs 35.04, dealers said.

The Reserve Bank of India has fixed the reference rate for US dollar at Rs 42.47, higher by three paise against yesterday's rate of Rs 42.44.

UNI

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