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FII activity on bourses augments $-supply, importers stay away; rupee up three paise to Rs 43.21

• Rs 43.21 vs $
• Rs 43.83 vs euro
• Rs 67.75 vs pound
• Rs 35.98 vs yen (100)

The rupee appreciated further and ended three paise stronger against the greenback in a relatively dull interbank foreign exchange market today.

The Indian unit opened nearly steady at Rs 43.22/24, showed a steady but slow upward movement on good dollar supplies by corporates and absence of adequate demand. The rupee ended at Rs 43.20/21, three paise higher from the previous day's close of 43.23/24.

Dealers said the inflows of foreign institutional investments in the capital market augmented the dollar supply, while major importers stayed away in view of the rupee's stability. State Bank of India reportedly did two-way business.

Forward premia drifted further lower on good receivings. The sixth month and yearly annualised premia closed lower at 3.88 per cent and 4.77 per cent respectively as compared to 4.60 per cent and 5.10 per cent of the previous day.

Cash/spot premium ended at 0.75-1.00 paise while cash/tomorrow finished at 0.25-0.50 paise. The month-wise premia in paise were: July 3.5-4.5, August 18-20, September 33-34, October 47-49, November 62-65, December 80-82, January 98-100, February 113-115, March 132-134, April 152-154, May 171-173 and June 191-193.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 43.22 as against Rs 43.25 of the previous day.

The rupee ended against sterling at Rs 67.31 from the previous day's 67.75 and against euro at Rs 43.83 (44.06), yen at 35.98.

In the domestic money market, the call rates opened higher at 8.60-8.75 per cent, drifted lower and ended nearly steady at 8.20-8.40 per cent.

UNI

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