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FY-end $ demand pushes rupee down three paise; Rs 42.43

The rupee ended three paise lower at Rs 42.4300/4325 on month-end dollar demand, while forward premia declined moderately at a fairly active interbank foreign exchange market today.

Opening lower at Rs 42.4300/4350, the rupee further eased to Rs 42.4325/44 levels in the morning and later hovered around the opening levels.

It ended at Rs 42.4300/4325 as against Rs 42.3050/4050 of the previous day, losing about three paise. Dealers said though there was enough dollar supply, financial year-end demand from corporates coupled with shifting the spot date to April 5, due to intervening holidays, put some pressure on the spot rupee.

Forward premia crashed by 9-10 paise in the absence of paying pressure and good receiving. The six-month and annualised premia ended lower at 6.74 and 7.24 per cent respectively from 7.09 and 7.40 per cent of the previous day.

Cash/spot ended higher at 6-7 paise premium while cash/tomorrow finished at 0.25-0.50 paise premium. The month-wise premia in paise were April 15-17 (24-26), May 38-41 (48-50), June 62-65 (73-75), July 87-90 (99-101), August 112-114 (123-125) and September 137-140 (147-150).

The rupee ended against sterling at Rs 68.55 (Rs 68.79), euro at Rs 45.44 (Rs 45.91), yen at Rs 35.31 (Rs 35.57).

Meanwhile, the Reserve Bank of India fixed the reference rate for US dollar at Rs 42.43 as against Rs 42.40 of the previous day.

In the domestic money market, the call rates opened steady at 8.00-8.25 per cent, ruled between 8.00 and 8.30 per cent, ended at 8.10-8.30 per cent.

UNI

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