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Rupee moves in narrow range in dull trading, ends a tad stronger

• Rs 43.50 vs $
• Rs 45.46 vs euro
• Rs 69.05 vs pound
• Rs 38.99 vs yen (100)

The Indian rupee ruled in a narrow range and closed marginally stronger at Rs 43.4950/50 against the greenback at a relatively dull interbank foreign exchange market.

The Indian unit opened nearly steady at Rs 43.5050/5150, moved up to Rs 43.4850/4900 level in the morning as some banks and corporates off-loaded their overbought positions, coupled with relatively lower demand.

The rupee ruled around that level most part of the day before closing at Rs 43.4950/50, marginally higher from the previous day's closing level of Rs 43.51/5150, gaining about two paise. Dealers said the moderate month-end demand for the greenback from some banks was easily met by the supplies in the system.

The foreign institutional investors' inflows to the capital market also augmented the dollar supply, they added.

Forward premia ended slightly higher on paying pressure. Near forwards remained nearly steady while far forwards moved by two paise. The six month and yearly premia finished a bit higher at 4.93 and 5.26 per cent respectively as compared to 4.93 and 5.26 per cent of the previous day.

Cash/spot and cash/tomorrow premia ended at 1.50-1.75 paise and 0.35-0.60 paise respectively. The month-wise premia in paise were September 16-17, October 34-36, November 51-53, December 67-70, January 91-92, February 107-109, March 127-129, April 147-149, May 167-169, June 187-189, July 207-209 and August 226-228.

Meanwhile, the Reserve Bank of India has fixed the reference rate for US dollar at Rs 43.50 as against Rs 43.52 of the previous day.

In the cross currency, the rupee appreciated marginally against pound sterling, euro and Japanese yen. It ended against sterling at Rs 69.05 (69.08), euro at Rs 45.46 (45.52) and yen at Rs 38.99 (39.08).

At the interbank call money market, the call rates ruled easy due to the reporting Friday and closed lower at 7.75-7.80 as against 8.00-8.05 per cent of the previous day.

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