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Rupee edges up one paisa against $ in dull market; Rs 42.44/45

It was a repeat performance of sorts. Like on Monday, the rupee further appreciated by one paise against the greenback on a quiet interbank foreign exchange market today.

Opening steady at Rs 42.45/46, which itself was the day's low, the rupee was gradually moving up to Rs 42.43/44 level till afternoon due to lack of dollar buying interest and scattered sales.

However, at the fag end, the rupee came under some pressure as reports of Indian National Lok Dal withdrawing its support to the BJP-led government created some confusion in the market, resulting in fresh purchase of the US currency, dealers said.

The rupee eased slightly from its afternoon high and ended at Rs 42.44/45 against Rs 42.45/46 of the previous day, gaining one paise. State Bank of India has reportedly purchased dollars till afternoon, they added.

Forward premia which remained more or less steady till afternoon, moved up slightly on some paying pressure after the reports. Near forwards were almost steady while far forwards moved up by 2-3 paise. The sixth month annualised premium and yearly premium ended a bit higher at 6.83 and 7.31 per cent respectively.

Cash/spot ended at 1.00-1.25 paise premium and cash/tomorrow finished at 0.50-0.75 paise premium. The month-wise premia in paise were: February 9-11, March 32-34, April 57-60, May 80-83, June 107-110, July 133-136, August 161-163, September 187-190, October 213-216, November 241-244, December 270-273 and January 298-301.

Meanwhile, the Reserve Bank of India has revised its reference rate for US dollar three paise lower at Rs 42.44 against Rs 42.47 of the previous day.

In the domestic money market, the call rates after ruling between 8.60 and 9.10 per cent closed marginally higher at 8.90-9.10 per cent as against 8.65-8.75 per cent of the previous day.

In the cross currency, the rupee eased marginally against pound sterling and euro, while it inched up against the Japanese yen. Sterling ended at Rs 69.55 (Rs 69.37), euro at Rs 48.06 (Rs 47.73) and yen at Rs 37.02 (Rs 37.34).

UNI

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