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Rupee slides one paisa in a quiet market; Rs 42.51/52

The rupee ended one paise lower at Rs 42.51/52 against the greenback on a quiet interbank foreign exchange market today.

Opening a bit lower at Rs 42.51/52, the rupee moved in a narrow range, hovering around the opening level throughout the day and closed at the same level at Rs 42.51/52 against the previous close of Rs 42.50/51, declining by one paise.

Dealers said the market was very quiet and the Indian currency remained steady with moderate dollar demand and matching supply.

Forward market also witnessed moderate activity and premia remained nearly steady in the absence of paying pressure and scattered receiving. The sixth-month annualised and yearly premia ended at 6.58 per cent and 7.52 per cent respectively.

Cash/spot ended at 1.50-1.75 paise premium while cash/tomorrow closed at 0.25-0.50 paise premium. The month-wise premia in paise were: January 8-9, February 24-27, March 45-48, April 74-77, May 97-100, June 125-129, July 155-159, August 185-189, September 215-219, October 244-248, November 275-280 and December 304-309.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 42.52 against Rs 42.51 of the previous day.

The rupee appreciated slightly against pound sterling, euro and the Japanese yen. It ended against pound sterling at Rs 70.27 (70.46), at Rs 49.54 (50.25) against euro and at Rs 38.19 (38.25) against yen (100).

In the domestic money market, the call money interest rates ruled higher due to good demand for funds. It closed at 9.00-9.25 per cent against 8-60-8.75 per cent of the previous day.

In the Tokyo market, the dollar gained ground against the yen after the strong performance of shares traded in New York overnight.

The dollar bought 112.94 yen in early trading, up 0.42 yen from late Wednesday in Tokyo and also above its late New York level of 112.66 yen overnight.

The euro was lower against the dollar in thin trading and was quoted at $ 1.1631 in early trading, down from $ 1.1740 in Tokyo late Wednesday, but above its level of $ 1.1592 overnight in New York.

UNI

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