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Lack of market-moving factors keeps rupee stable; Rs 42.49/50 vs $

The rupee remained rocksteady against the greenback in a thinly traded interbank foreign exchange market today.

Opening steady at Rs 42.4950/5050, the rupee barely changed and ruled almost at the opening level throughout the day, as the market witnessed very dull activity.

The rupee ended steady at Rs 42.4975/5050. Major market players continued to stay away from the market seeing the stability of the rupee and in the absence of any anticipated market-moving factors around, dealers said adding that dollar demand and supply was nominal.

Activities in the forward dollar was also very dull. Forward premia eased a bit on moderate receivings. Near-forwards premia edged down by one paise while far-forwards eased by two paise. The sixth month annualised and yearly premia ended at 6.85 per cent and 7.40 per cent respectively.

Cash/spot ended at 2.50-3.00 paise premia while cash/tomorrow finished at 2.00-2.50 paise premium. The month-wise premia in paise were: February 15-16, March 38-40, April 66-69, May 87-90, June 113-116, July 140-143, August 167-170, September 195-198, October 221-226, November 249-252, December 279-282 and January 307-312.

Meanwhile, the Reserve Bank of India has maintained its reference rate for US dollar at Rs 42.50 today.

In the cross currency, the rupee appreciated slightly against the pound sterling, euro and Japanese yen. Sterling ended at Rs 69.98, euro at Rs 48.45 and yen at Rs 36.53.

In the domestic money market, the call money interest rates ruled easy today, being the reporting Friday and closed lower at 6.75-7.00 per cent.

In the Tokyo foreign exchange market, the dollar ruled higher against yen on reports of strong US economic data. The dollar bought 115.98 yen, up 0.52 yen from its Thursday's level. The euro traded higher at 132.45 yen against 132.10 of Thursday.

UNI

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