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Thin volumes mark dull trading; rupee slips a tad to Rs 42.76 vs $

The rupee closed slightly lower at Rs 42.75/76 against the US dollar, amid thinly traded volumes, at the interbank foreign exchange market today.

Opening steady at Rs 42.74/75, the rupee witnessed very narrow movement, fluctuating about one paisa on both sides.

The market witnessed moderate activity, but the rupee eased a bit from its morning level on fresh dollar buying by banks and the absence of adequate supply.

It closed slightly lower at Rs 42.75/76, as against Rs 42.74/75 of the previous day. Dealers said the dollar supply in the market continued to be good, but nationalised banks were buying it.

Forward market also witnessed moderate activity and premia drifted marginally lower in the absence of paying pressure and good receivings.

Near forwards eased by 1-2 paise while far forwards dropped by 5-6 paise. The six-month and yearly annualised premia closed a bit lower at 5.58 (5.68) per cent and 6.28 (6.35) per cent respectively.

Cash/spot and cash/tomorrow premia ended at 2.00-2.25 paise and 0.50-0.75 paise respectively. The month-wise premia in paise were: May 5-7, June 24-26, July 44-46, August 65-67, September 85-88, October 106-108, November 127-129, December 151-153, January 178-180, February 202-203, March 227-229 and April 251-253.

Meanwhile, the Reserve Bank of India maintained the reference rate for US dollar at Rs 42.75 per unit today.

In the interbank call money market, the call rates opened steady at ten per cent, moved in the range of 8.75-10 per cent level during the day and closed lower at 8.75-9.00 per cent as compared to 9.50-10.00 per cent of the previous day's close.

In the cross currency, the rupee remained nearly steady against pound sterling and euro while it eased a bit against the Japanese yen. Sterling ended at Rs 69.20, euro at Rs 45.50 and yen at Rs 35.20.

UNI

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