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Rupee ends two paise higher against dollar

The rupee continued its mild rally against the US greenback and ended two paise higher in a fairly active interbank foreign exchange market today.

Opening slightly higher at 42.45/4575 a dollar, the rupee witnessed a narrow movement ranging between Rs 42.44 and Rs 42.46 and finally ended at Rs 42.4450/4500 from the previous close of 42.47/4750, gaining over two paise. Dealers said the market witnessed moderate activity, but the rupee could maintain its slow uptrend in the absence of adequate demand for the us currency, which was off-loaded by corporates and banks.

Forward premia remained nearly steady with scattered receiving and lower paying pressure. April, December and January premiums eased slightly by 1-2 paise while all other monthly premiums ended unchanged. The six-month annualised premium ended at 7.06 per cent.

Cash/spot ended at 1.00-1.25 paise premium while cash/tom finished at 0.50-0.75 paise premium. The monthwise premiums in paise were: March 14-16, April 38-41, May 63-65, June 89-91, July 114-116, August 139-141, September 165-167, October 193-195, November 221-224, December 249-252, January 276-279 and February 301-304.

Meanwhile, the Reserve Bank of India has fixed the reference rate at Rs 42.44 a dollar, up from the previous Rs 42.47. The rupee ended at Rs 68.86 against pound sterling, at Rs 46.50 against the euro and at 35.19 against the yen.

In the domestic money market, the call rates ruled between 8.00 and 8.30 per cent level and ended lower at 7.90-8.00 per cent as against 8.109-8.25 per cent of the previous day.

UNI

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