COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Rupee inches up a tad in dull market; Rs 42.40 vs $

The rupee edged up by one paisa against the greenback on a thinly traded interbank foreign exchange market today.

Opening marginally higher at Rs 42.4000/4050, the rupee witnessed very little movement, hovering at Rs 39.75 - Rs 40.50 throughout the day.

It ended at the opening level of Rs 42.40 as against Rs 42.4125 / 4175 of the previous close, gaining one paisa.

Dealers said the market was dull today with poor demand for the greenback and scattered off-loading by corporates.

However, State Bank of India's support to the US dollar at Rs 42.40 level, arrested the rupee's further appreciation. Most of the importers stayed away from the market in view of the rupee's stability and fast-nearing close of the current fiscal year, dealers said.

Activity in the forward market also remained dull. Forward premia came down in the absence of paying pressure and some receivings by SBI. Near forwards eased by 3-4 paise while far-forwards ended one paise lower. The sixth-month annualised and yearly premia closed lower at 7.09 per cent and 7.49 per cent respectively.

Cash/spot ended at 2.75-3.25 paise premium and cash/tomorrow finished at 2.00-2.25 paise premium. The month-wise premium in paise were: March 6-7, April 30-32, May 53-56, June 79-81, July 105-107, August 131-133, September 156-159, October 185-188, November 215-218, December 244-247, January 272-275 and February 297-300.

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at two paise lower at Rs 42.40 against Rs 42.42 of the previous day.

In the cross currency, rupee remained steady against pound sterling, weakened slightly against Japanese yen and appreciated a bit against euro. Sterling ended at Rs 68.98 (Rs 68.98), yen at Rs 36.17 (Rs 35.68) and euro at Rs 46.38 (Rs 46.58).

In the domestic money market, the call rates opened higher at 10.75 per cent, eased later to close at 8.75-9.25 per cent, lower from its previous day's close of 9.25-9.75 per cent.

UNI

Business news