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Rupee gains two paise vs $ in dull trading; Rs 42.48/49

The rupee ended two paise higher against the greenback on fresh dollar sales by corporates and lower demand in a dull interbank foreign exchange market today.

Opening a bit higher at Rs 42.50/51, which was to be the day's low, the rupee gradually moved up on good dollar off-loading by corporates since yesterday was a bank holiday. The Indian unit ended at Rs 42.4850/4950 against the previous close of Rs 42.5050/5150, gaining two paise today.

Dealers said the market was very dull with slack dollar demand while the corporates sold the greenback accumulated yesterday and today. The importers were not in a hurry and preferred to stay away in view of the rupee's stability for the last one week.

Forward premia also witnessed narrow movement and ended slightly lower on better receiving. Near forwards moved down by one paise while far forwards were lower by 4-5 paise. The six-month annualised premium and yearly premium ended at 7.10 per cent and 7.64 per cent respectively.

Cash/spot and cash/tomorrow ended at 0.75-1.00 paise premium and 0.30-0.50 paise premia respectively. The month-wise premia in paise were: February 18-20, March 43-45, April 72-74, May 93-96, June 118-121, July 147-150, August 175-178, September 203-206, October 232-236, November 262-265 and December 292-295.

Meanwhile, the Reserve Bank of India has fixed the reference rate for US dollar at Rs 42.49 as against Rs 42.51 of the previous day.

The rupee ended nearly steady against pound sterling at Rs 70.21 and Japanese yen at Rs 37.19, while it appreciated slightly against the euro currency to Rs 48.94 from Rs 49.24.

In the domestic money market, the call rates ruled in a narrow range and ended steady at 8.20-8.30 per cent with matching supply and demand.

In Tokyo, the US dollar drifted slightly higher against the yen today amid a fresh reiteration of China's official commitemnt to maintain the yuan's value. The dollar bought 113.82 yen, up 0.26 yen from its late Tuesday level. The euro traded at 131.59 yen, down from 131.82 yen of Tuesday.

UNI

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