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Rupee firms up 8 paise against the $

The rupee appreciated by about 8paise against the US dollar in active trading at the inter-bank foreign exchange (forex) market today.

The rupee opened marginally higher at Rs42.52/55 against the previous close of 42.56/57. In the morning, it was being quoted lower at Rs42.53/56 on corporate demand, but later recovered smartly to Rs42.48/49 and remained steady there.

Dealers said the movement was clearly opposite to market expectations. The market had thought the rupee would depreciate after the Budget proposals were presented to Parliament on Saturday.

The market saw some activity in the morning only because there was a demand for spot dollars following the strike on Thursday and Friday followed by the weekly holiday on Sunday. Banks will be closed again tomorrow on account of Holi.

The forward-dollar premia on all deliveries came down sharply with the March premia quoted lower at 21-23paise, April 49-52, May 72-75, June 100-103, July 126-129, August 151-156, September 185-188, October 216-219, November 245-248, December 275-278, January 305-336 and February 332-336paise, respectively.

The Reserve Bank of India has fixed the reference rate for dollar at Rs42.51 against the previous fix of Rs42.49.

In the cross currency, the rupee registered handsome gains against the euro and the pound sterling while it lost moderately against Japanese yen.

The rupee closed at Rs46.70 against the euro from the previous close of Rs46.78. The Indian currency unit ended higher against the sterling too at Rs68.26 against the previous close of Rs68.42. But it lost to the Japanese yen at Rs35.68 from the previous close of 35.08.

UNI

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