COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Rupee slides a bit at fag-end; Rs 42.41 vs $

Market sentiment was slightly affected towards the fag end of trading at the interbank foreign exchange market with the rupee registering marginal decline at Rs 42.4125/4175 against the American greenback, following last minute dollar buying by corporates in view of fresh political developments.

The rupee opened at Rs 42.41.42, hovered around the opening level and was quoted at Rs 42.4125/4175 in the afternoon, slightly higher from the previous close of Rs 42.4050/4075. It dropped to Rs 42.4125/4175 towards the end on some dollar buying pressure from corporates, dealers said.

A forex dealer said that the split in Samata Party has affected market sentiments towards the fag end. The market also witnessed paying pressure in the last minute.

Cash-spot opened high at 5-6 paise premium and later eased to 4-5 paise premium. Cash-tomorrow quoted at 2.5-3 paise and 1.5-2 paise premium.

Dealers said that in view of tomorrow's bank holiday, the cash spot was conducted for five days. They also attributed the rise in cash-spot premia to the fear of possible liquidity crunch in the money market. The call rates continued to rule high above 10 per cent, they said.

The month-wise forward premia in paise came down considerably as against their previous day's levels.

Monthly forward premia in paise were quoted at 8-10 for March, 34-36 for April, 57-59 for May, 82-85 for June, 109-112 for July, 134-137 for August, 159-162 for September, 182-190 for October, 216-219 for November, 245-248 for December, 273-278 for January and 299-303 for February.

The half-yearly annualised premia in percentage quoted at 7.19 per cent and the yearly annualised premia went at 7.54 per cent.

In the overseas, the rupee ended at Rs 46.58 against euro, Rs 68.98 against the pound sterling and Rs 35.68 against the Japanese yen (100).

The Reserve Bank of India fixed the reference rate for US dollar at Rs 42.42 as against Rs 42.41 of the previous day.

UNI

Business news