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Rupee stabilises after early weakness; Rs 42.33/34

The rupee, after showing signs of weakness against the greenback, stablised to close at the previous levels at the interbank foreign exchange (forex) market in Bombay on Saturday.

The Indian unit opened at Rs 42.30/32, but at around mid-session fell to 42.38/39 on renewed dollar buying by a few banks and short-covering by some other market players. The dollar, finally, closed at Rs 42.33/34.

A leading American bank reportedly booked US dollar 150 million for a state electricity board company. State Bank of India too was buying for some corporate clients. The forwards, ruled higher in early trading, but later slumped on selling pressure.

Cash/spot closed at 1.75-2.50 paise, cash/tomorrow at 1.50/2.00 and tomorrow/spot at 0.25-0.50 levels. The monthly premia (in paise) was 15-18 for November, 36-40 for December, 64-68 for January, 89-94 for February, 120-125 for March and 150-154 for April.

The six-month annualised premia ended at 7.38 per cent.

The world markets reported moderate movements between international currencies. The rupee closed at Rs 70.02 against the pound sterling, Rs 36.27 against Japanese yen and 25.60 against deutsche mark.

Elsewhere, the Reserve Bank of India fixed its reference rate at Rs 42.37 as against the previous fix of Rs 42.29 per unit.

UNI