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SBI goes on dollar-buying spree; rupee down one paisa, Rs 42.31/32

The rupee ended marginally lower by one paise against the greenback on the interbank foreign exchange market today.

Opening steady at Rs 42.30/32, the rupee strengthened to Rs 42.28/29 level in the morning on good dollar supply and lower demands and remained almost at that level till early afternoon.

But the heavy dollar purchases by State Bank of India and other banks at that lower level pushed down the rupee to close at Rs 42.31/32 against the previous close of Rs 42.30/31, losing one paise of its value.

Forward premia remained almost steady in the absence of any paying pressure and moderate receiving. The third month, sixth month and yearly annualised premia were quoted at 7.10 per cent, 8.05 per cent and 8.60 per cent.

Cash/spot business were done at 3-3.50 paise premium and cash/tomorrow at 2.25-2.50 paise premium.

The month-wise premia in paise were: October 3-5, November 24-27, December 48-51, January 76-80, February 106-110, March 138-142, April 171-175, May 204-208, June 237-241 and July 271-275.

Meanwhile, the Reserve Bank of India has revised the reference rate for US dollar one paise higher at Rs 42.30 against Rs 42.29 of the previous day.

In the overseas market, the yen strengthened against the US dollar after the cut in the interest rate by the Federal Reserve. However, the deutsche mark and pound sterling remained nearly steady. The rupee weakened slightly against sterling, DM and yen and quoted Rs 72.03 for sterling, Rs 26.27 for DM and Rs 37.07 for yen.

In the domestic money market, the call money interest rates after ruling between 9.10-9.40 per cent most part of the day closed at 9.10-9.20 per cent.

UNI