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Divergent trading, mixed movement: rupee down three paise vs $, up 56 paise vs pound

The Indian unit weakened by three paise against the US dollar in a divergent trading at the interbank foreign exchange market in Bombay today.

Opening at the previous closing level of Rs 42.39/40 per unit, the Indian rupee touched the day's high of Rs 42.37/38 in the morning on slack demand for dollars from participants.

After witnessing dull trading in the morning, there was heavy demand from banks and corporates in the afternoon which resulted in the slide of the rupee and it finally settled at Rs 42.41/43 against the previous close of Rs 42.39/40, a leading dealer said.

State Bank of India also bought dollars in the afternoon.

Cash/spot was traded in the region of 0.50-1.00 paise premium and cash/tomorrow closed at 0.00-0.25 paise premium. Nominal merchant booking was witnessed so far.

Meanwhile, the Reserve Bank of India fixed the reference rate for us dollar two paise higher at Rs 42.38 against its previous fix of Rs 42.40.

Month-wise premia (in paise) were 1-3 for November, 18-20 for December, 39-42 for January, 64-68 for February, 98-102 for March, 130-134 for April, 162-166 for May, 194-198 for June, 225-230 for July, 259-264 for August, 291-296 for September and 322-327 for October.

The annualised premia was quoted 4.80 for first month, 6.11 for third month and 7.31 for six month. Annual premia was quoted at 8.41 per cent.

In overseas market, the dollar was strengthened against pound sterling, deutsche mark and Japanese yen. The rupee was quoted against pound sterling at Rs 69.90, against deutsche mark at Rs 24.88 and against Japanese yen at Rs 34.99.

UNI

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