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Rupee gains five paise vs $ in active trading; Rs 42.76

The rupee, after moving in a narrow range, strengthened by five paise against the US greenback on a fairly active interbank foreign exchange market today.

The rupee opened lower at Rs 42.77/78, remained at that level till noon, as some oil companies were reportedly absolving the moderate greenback supply. However, as corporates started heavy dollar off-loading, which had accumulated during the three-day holiday, the rupee moved up and closed higher at Rs 42.75/76 as against Rs 42.80/81 of last Thursday's closing, gaining its value by five paise.

Activity in the forward market continued to be dull and forward premia eased a bit in the absence of paying pressure and some receiving. Average monthly premia closed 1-2 paise lower. The six-month and yearly annualised premia ended at 6.07 per cent and 6.79 per cent respectively.

Premium on cash/spot ended at 0.75-1.00 paise while cash/tomorrow finished at 0.25-0.50 paise. The month-wise premia in paise were: May 12-14, June 32-34, July 53-55, August 75-77, September 99-102, October 124-126, November 150-152, December 178-181, January 206-209, February 231-234, March 257-260 and April 283-285.

Meanwhile, the Reserve Bank of India revised the reference rate for US dollar at Rs 42.78 as against Rs 42.84 of the previous day.

In cross currency, the rupee appreciated marginally against pound sterling, euro and the Japanese yen. It ended slightly higher at Rs 68.92 for sterling, Rs 45.30 for euro and Rs 35.74 for yen from Rs 69.09, Rs 45.35 and Rs 35.95 respectively of the previous close.

In the domestic money market, the call rates opened higher at 8.20-8.30 per cent from 8.00-8.10 per cent of the previous closing. It ruled in the range of 8.00-8.40 per cent level most part of the day, and closed at 8.00-8.25 per cent.

UNI

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