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Rupee gains two paise to US $ in dull trading

• Rs 43.43 vs $
• Rs 46.34 vs euro
• Rs 70.00 vs pound
• Rs 37.75 vs yen (100)

The Indian rupee recovered by two paise against US dollar in a relatively dull quiet trading at the interbank foreign exchange market today.

The rupee opened nearly steady at Rs 43.45/46, remained at that level most of the time with very moderate dollar demand and almost matching supply.

Later in the evening, rupee rose marginally on renewed dollar supply by State Bank of India and other banks and closed at Rs 43.4250/4350, about three paise higher from the previous day's close of Rs 43.45/47.

Dealers said after the last two days of hectic activity, the spot rupee market remained very dull today as players did not want to take the weekend position.

Unlike the spot market, forward rupee market continued to witness hectic activity on the second straight day today. Premia rose sharply in the morning when the call rates shot up to a high 28 per cent level in spite of the reporting Friday, but dropped sharply later in the afternoon, tracking the call rates.

Near forwards eased by 2-3 paise while far forwards closed more than ten paise lower from the previous day's levels. The sixth month and yearly annualised premia ended lower at 4.88 per cent and 5.14 per cent respectively, sharply lower from the previous day's 5.41 per cent and 5.53 per cent.

Cash/spot and cash/tomorrow premia moved upto 10-12 paise and 6-8 paise due the higher call rates. The month-wise premia in paise were: August 9-11, September 25-27, October 40-42, November 56-58, December 74-76, January 95-97, February 114-116, March 133-135, April 152-154, May 172-174, June 191-193 and July 211-213.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 43.46 as against Rs 43.47 of the previous day.

In the cross currency, the rupee finished slightly lower against pound sterling, euro and Japanese yen. Sterling ended at Rs 70.00 (69.84), euro at Rs 46.34 (46.20) and yen at Rs 37.75 (37.47).

UNI

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