COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Rupee gains ground as banks offload dollar

The Indian rupee further strengthened by two paise against the US dollar on a fairly active foreign exchange market today.

Opening steady at Rs 42.4900/4950, the low of the day, the Indian unit gradually moved up on the dollar following off-loading by banks and corporates. The currency ended at Rs 42.4700/4750 against Rs 42.49/50 of the previous day, gaining two paise.

The forward market witnessed relatively good activity. In the morning, forward premiums moved up on paying pressure, but it eased on good receiving in the evening and finally ended 2-3 paise lower than its previous day's closing levels. The sixth month annualised premium and the yearly one ended lower at 7.00 and 7.31 per cent respectively.

Cash/spot ended at 1.00-1.25 while cash/tom finished at 0.50-0.75 paise premium. The monthwise premia in paise were: March - 14-16, April - 39-42, May - 62-65, June - 89-91, July - 114-116, August - 139-142, September - 165-167, October - 194-197, November - 221-224, December - 250-253, January - 277-280 and February - 301-304.

Meanwhile, the Reserve Bank of India has revised the reference rate for the US dollar 3 paise lower, to Rs 42.47 as against Rs 42.50 the previous day.

In the cross currency, the rupee weakened slightly against the pound sterling, while it gained marginally against the euro and the Japanese yen. Sterling ended at Rs 68.27, euro at Rs 46.15 and yen at Rs 34.92.

In the domestic money market, the call rates opened higher at 8.20-8.40 per cent closed at 8.10-8.25 per cent.

UNI

Business news