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Rupee reacts to talk of petro price hike, slips a tad to Rs 43.25 to $

• Rs 43.25 vs $
• Rs 44.21 vs euro
• Rs 67.64 vs pound
• Rs 35.89 vs yen (100)

The Indian rupee ended marginally lower by one paisa at Rs 43.25/26 agaisnt the greenback, in a quiet trading at the interbank foreign exchange market today.

The Indian unit opened a bit higher at Rs 43.2350/2400, drifted lower to Rs 43.26/27 level around noon as reports of price hike in petroleum products in international market, which would result in a higher import bill, put a mild pressure on the rupee.

However, it eased from its intra-day level later on renewed dollar sales and closed at Rs 43.25/26, one paisa lower from the previous day's close of Rs 43.24/25. Dealers said the market witnessed lower activity as major corporates stayed away and the rupee moved in a three paise range.

Forward premia, moving in a narrow range, eased slightly on scattered receivings. Average monthly premia moved down by 1-2 paise. The sixth month and yearly annualised premia ended a bit lower at 4.44 per cent and 5.17 per cent respectively as compared to 4.70 per cent and 5.20 per cent of the previous day.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 43.27 as against Rs 43.24 of the previous day. In the cross currency also, the rupee weakened against pound sterling, euro and Japanese yen. It ended against sterling at Rs 67.64 (67.33), euro at Rs 44.21 (43.98) and yen at 35.89 (35.75).

UNI

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