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Range-bound market keeps rupee steady; Rs 42.49/50 vs $

The Indian unit weakened by one paise against the greenback in a range-bound interbank foreign exchange (forex) market today.

The rupee opened lower at Rs 42.50/52 against the previous close of Rs 42.48/49. In the morning it fell down further to Rs 42.53/54 following good dollar demand from corporates and banks and nominal supply.

After renewed dollar supply, coupled with some corporates' dollar-selling, it recovered marginally before closing at Rs 42.49/50, a leading dealer said and added that in the morning, the market witnessed good activity but after fresh dollar supply, it was quiet.

Forward market witnessed good activity and the forward premia moved up slightly. Forward premia gained by around five paise. The sixth-month annualised and yearly premia closed higher at 6.82 per cent and 7.45 per cent respectively.

The Reserve Bank of India fixed the reference rate for US dollar two paise higher at Rrs 42.52 against the previous fix of rs Rs 42.50.

Cash/spot and cash/tomorrow ended higher at 6.00-8.00 and 1.50-2.00 paise premium respectively. The month-wise premia in paise were: January 9-11, February 28-31, March 49-52, April 77-80, May 99-102, June 125-128, July 154-157, August 181-185, September 208-212, October 235-239, November 264-268 and December 294-298.

The rupee strengthened against the euro and Japanese yen while it weakened slightly against pound sterling. It ended against euro at Rs 49.50 (49.59), yen at Rs 37.29 (37.80) and pound sterling at Rs 70.06 (69.98).

UNI

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