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Despite month-end demand, scattered $ inflows keep rupee steady

• Rs 43.51 vs $
• Rs 45.52 vs euro
• Rs 69.13 vs pound
• Rs 39.08 vs yen (100)

The Indian rupee ended a bit lower at 43.5100/5150 against the US greenback at a relatively dull interbank foreign exchange market today.

The rupee opened lower at 43.53/54 and remained at that level for sometime in the morning on good greenback demand. However, on fresh dollar supply later, the rupee moved up marginally to close at 43.5100/5250, slightly lower from the previous day's closing of 43.5150/5200.

Dealers said though there was some month-end demand for the greenback from corporates, scattered inflows to the system kept the rupee nearly steady.

Absence of any speculatiive demand and panic in the market after the Reserve Bank of India's strong measures to reduce the demand-supply also helped the rupee to be stable, they added.

Forward premiums moved in a narrow range and closed slightly higher on some paying pressure. The six-month and yearly premia ended a bit higher at 4.89 per cent and 5.18 per cent respectively as compared to 4.80 and 5.11 per cent of the previous day.

cash/spot ended at 1.50-1.75 paise while cash/tomorrow finished at 0.37-0.50 paise. The month-wise premia in paise were: August 1.50-2.50, September 17-18, October 34-36, November 50-52, December 66-68, January 91-92, February 107-108, March 126-128, April 146-147, May 166-167, June 186-187 and July 205-207.

Meanwhile, the RBI maintained the reference rate for dollar at Rs 43.52.

The rupee eased slightly against pound sterling and euro while it strengthened against Japanese yen. Sterling finished at Rs 69.13 (68.99), euro at Rs 45.52 (45.41) and yen at Rs 39.08 (39.13).

At the interbank call money market, the call rates ruled around 8 per cent level and closed steady at 8.00-8.05 per cent.

UNI

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