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Moderate trading keeps rupee steady; Rs 43.43 to US $

• Rs 43.43 vs $
• Rs 46.70 vs euro
• Rs 70.09 vs pound
• Rs 37.84 vs yen (100)

The Indian rupee ended marginally lower at Rs 43.4250/4300 against the greenback at a fairly active interbank foreign exchange market today.

The rupee opened higher at Rs 43.38/40, eased to the low of Rs 43.44/45 in the morning on constant dollar demand from corporates. However, it recovered some of the intra-day loss as State Bank of India sold the greenback, though in small amount.

Rupee closed at Rs 43.4225/4325, nearly two paise lower from the previous closing level of 43.40/42. Dealers said the market, after Monday's volitility, witnessed moderate tradings and the five paise movement of the rupee during the day was just a matter of demand and supply. There was no significant dollar demand from any major corporates, they added.

Forward premia moved up marginally on paying pressure. Near forwards edged up by one paisa while far forwards rose by 3-4 paise. The sixth month and annualised premia closed marginally higher at 4.90 per cent and 5.16 per cent respectively as compared to 4.71 per cent and 5.01 per cent of the previous day.

Premium on cash/spot and cash/tomorrow finished at 0.75-1.00 paise and 0.25-0.50 paise respectively. The month-wise premia in paise were: August 10-11, September 25-27, October 41-43, November 58-61, December 78-81, January 101-102, February 115-118, March 135-138, April 155-158, May 175-178, June 195-198 and July 215-218.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 43.45 as against Rs 43.54 of the previous day.

In the cross currency, the rupee weakened against pound sterling, euro and Japanese yen. Sterling ended at 70.09 (68.68), euro at 46.70 (46.39) and yen at 37.84 (37.62).

At the domestic money market, the call rates ruled in a narrow range of 8.85-9.20 per cent during the day and closed steady at 8.90-9.00 per cent on good liquidity and matching demand ahead of the reporting Friday.

In Tokyo, the dollar stood at 115.12-15 yen, down from 115.18-21 yen of Monday. The euro was quoted at 1.0700-10 dollars, unchanged from 1.0700-10 of Monday.

UNI

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