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Rupee falls by five paise

After witnessing steady trend, the Indian rupee fell by about 5-6 paise against the US dollar at the fag end of trading following dollar-buying pressure by State Bank of India at the interbank foreign exchange in Bombay market today.

The Reserve Bank of India intervened in the forward market and extended support in the April delivery, bringing down the fast-rising forward premiums.

The rupee opened at Rs 39.11, moved in the range of 39.12-13 till afternoon and declined sharply to Rs 39.17-18 per dollar during the late afternoon trade when the State Bank of India entered the market for corporate covering, forex dealers said.

Besides the SBI, there was no any other major buyer, hence the rupee closed at Rs 39.16-18 per dollar, dealers said.

Cash-spot business was done at the higher level of 2-2.5 paise premium.

In the forwards, December closed at 0-1 paisa premium, January at 33-35 paise premium, February at 66-67 paise, March at 96-98 paise premium. The forward premia for April opened at 137-140 and declined immediately after the RBI intervened to close at 125-128 paise premium. May dollar closed at 125-129 paise premium.

The annualised forward premia closed at 8.95 per cent. The rupee traded in the range of Rs 65 and Rs 65.30 against the pound sterling.

Against the mark, the rupee opened at 22.09 and closed at Rs 22.02, and opened at Rs 30.22 per 100 yen and closed at Rs 30.

Elsewhere, the Reserve Bank of India has fixed the reference rate at Rs 39.11 per dollar as against yesterday's fix of Rs 39.17 per dollar.

UNI