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Corporate demand for $ weakens rupee; Rs 42.49/49.5

The rupee weakened by four paise against the greenback on renewed corporate dollar demand and lower supply in an active session at the interbank foreign exchange (forex) market today.

Opening a bit lower at Rs 42.45/46, the rupee came under pressure on heavy corporate dollar buying coupled with lower supply on account of the New York holiday yesterday.

The rupee slid upto the low of 42.52/53 at the intra-day before closing at Rs 42.4900/4950, losing about four paise. The market witnessed good activity after a long time and good import covering on lower supply resulted in the slide of Indian currency.

The forward market also witnessed good activity and premia moved up slightly on paying pressure. Near forwards remained nearly steady while far-forwards went up by about two paise. Good import booking were conducted in near and far forward, dealers said. The six-month annualised and yearly premia closed a bit higher at 7.16 per cent and 7.70 per cent respectively.

Cash/spot ended at 1.00-1.25 paise premium, while cash/tomorrow finished at 0.50-0.75 paise premium. The month-wise premia in paise were: February 5-7, March 29-31, April 56-58, May 80-82, June 108-110, July 135-137, August 162-165, September 191-194, October 219-222, November 249-251, December 277-280 and January 306-309.

Meanwhile, the Reserve Bank of India revised the reference rate for US dollar at Rs 42.49 against Rs 42.42 of the previous day. In the cross currency, the rupee appreciated against euro and Japanese yen while it weakened against pound sterling. Euro ended at Rs 47.55 (Rs 47.80), yen at Rs 36.16 (Rs 37.05) and sterling at Rs 69.39 (Rs 69.19).

In the dometic money market, the call money rate after ruling between 8.85-9.10 per cent level, closed slightly lower at 8.90-9.00 per cent.

UNI

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