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Quiet trading keeps rupee steady; Rs 42.49/50

The rupee strengthened by two paise against the greenback in a quiet interbank foreign exchange market today.

Opening steady at Rs 42.51/52, the rupee remained almost at the same level till mid-session with equal dollar demand and supply. Later in the evening the rupee strengthened to Rs 42.48/49 with better dollar sales by corporates and banks and lower demand and finally closed at Rs 42.49/50 against the previous close of Rs 42.51/52. Dealers said the rupee witnessed only three paise movement between Rs 42.48/49 and Rs 42. 51/52 today. Major market player State Bank of India which stayed away from the market in the morning, was seen buying the dollars in the afternoon session, they added.

Forward premia remained nearly steady with nominal import booking in forwards and in the absence of any paying pressure.

Meanwhile, the Reserve Bank of India has fixed the reference rate for US dollar two paise lower at Rs 42.51 against Rs 42.49 of the previous day.

The sixth month and yearly annualised premia were quoted at 8.90 per cent and 9.35 per cent respectively. Cash/spot businesses were conducted at 1.00-1.50 paise premium while cash/tomorrow were done at 0.50-0.75 paise premium. The month-wise premiums in paise were: September 10-12, October 39-42, November 70-72, December 101-105, January 134-138, February 164-169, March 200-204, April 234-239 and May 270-175.

In the domestic money market, the call money interest rates, after ruling between 9.00 and 9.25 per cent during the day, closed slightly higher at 09.15-09.25 per cent against 9.00-9.15 per cent of the previous day.

In the overseas market, the sterling, deutsche mark and Japanese yen also strengthened against the US dollar. The sterling closed at Rs 71.47, the DM at Rs 25.20 and yen at Rs 32.01.

UNI