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Little movement, rupee ends higher

Hardly three-four paise movement was witnessed in the interbank foreign exchange market today in absence of demand from banks and corporate sectors.

The dollar opened steady at Rs 39.18-20 on slack demand from all corner, it was hovering at same level till mid-session, leading forex manager said, and added that it was a squarish market. Demand was matched by the sufficient supply of dollar.

Most of the deals were conducted in the range of Rs 39.17, and finally, the Indian currency appreciated by three paise and closed at Rs 39.15-17, dealers added.

The Reserve Bank of India was in the market and intervened in the forwards, particularly in near forwards for January and February, which drifted lower the monthly premium of January at 9.42 per cent, February at 9.44, and March was at 10.54 per cent. Annualised premium was quoted at 8.58 per cent, they added.

Both importers and exporters have adopted the role of wait-and-watch as forex market ruled nearly steady for last couple of days, dealers said. Only marginal amount of export and import booking was covered in cash and spot basis in merchant sections.

Meanwhile, the RBI fixed the reference rate for the US dollar at Rs 39.17 as against Rs 39.23 on the last working day.

Two-three paise movement was observed in cross currency market, the yen weakened marginally against dollar, which have nominal movement in other major cross currencies.

The cash to spot dollar was quoted at 01.50-01.75 paise premium, spot/December traded at 05-07 paise premium, spot/Jan at 37-39 paise premium, spot/Feb at 68-70 paise premium and the six month (May) was quoted between 170 and 175 paise premium.

UNI