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Rupee gains ground on signs of stability

• Rs 43.36 vs $
• Rs 46.29 vs euro
• Rs 71.78 vs pound
• Rs 40.81 vs yen (100)

The rupee gained considerable ground today as market-players interpreted the Bharatiya Janata Party-led National Democratic Alliance's moves to form the next government without any hitch as signs of future stability in the country.

In the interbank foreign exchange market today, the Indian unit showed a net gain of five paise from its previous closing levels.

Opening at 43.40/41, the rupee strengthened to 43.29/30 on dollar-selling by exporters, who perceived the 43.40/41 levels as an ideal point to book profits.

"There was some demand from importers at 43.30/31 levels allowing the rupee to shed gains and end at 43.3650/3750 as against the last close of 43.42/43,'' said a treasury manager.

The upbeat mood in the stockmarkets, where the BSE-Sensex touched a new high of 5150, was reflected in the forex market as players perceived this as a sign of increased dollar inflows by the FIIs.

The forward premia ended slightly firm on some covering by exporters. The monthly premia (in paise) were 12-13 for October, 30-31 for November, 47-49 for December, 69-70 for January, 87-89 for February, 106-108 for March and 126-128 for April. The six-month annualised premia ended at 5.34 per cent.

Cash/spot and tomorrow/spot was not quoted as the New York market was closed. Tomorrow/spot ended at 0.75-1.00 paise. Meanwhile, the rupee ended at 71.78 a pound sterling, 40.81 a yen and 46.29 a euro.

The Reserve Bank of India fixed the reference rate at Rs 43.33 a US dollar as against the last fix of Rs 43.48.

UNI

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