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Post-rate cut rupee bounces back after early slump; Rs 42.49/50 vs $

The rupee bounced back after declining by eight paise against the US greenback in intra-day trade at the interbank foreign exchange market today.

The Indian unit opened at Rs 42.49/51 a dollar, but fell to Rs 42.56/57 levels in the morning on sudden import covering by corporates on news about an international credit rating agency giving adverse comments on the Indian economy in its report.

However, good supply on account of yesterday's holiday led the rupee to recover lost ground. The rupee ended at Rs 42.4950/5050, showing a net loss of around two paise from the last close of Rs 42.48/49.

The forwards opened lower, but firmed towards the end due to fresh bookings. The monthly premia (in paise) were 15-16 for March, 42-45 for April, 63-66 for May, 90-93 for June, 116-119 for July, 145-146 for August and 172-175 for September. The six-month annualised premia ended at 7.01 per cent.

Cash/spot ended at 0.75-1.00 paise, while cash/tomorrow and tomorrow/spot at 0.375-0.50 paise each.

At the Tokyo forex market, the dollar jumped to 121.18 yen in late afternoon trading, up 1.10 yen from late Tuesday in Tokyo and higher than its late New York level of 120.23 yen overnight.

At the local market, rupee ended at Rs 68.70 vs pound sterling, Rs 46.41 vs euro and Rs 35.08 vs yen.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 42.55 as against the previous fix of Rs 42.51.

UNI

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