Year-end dollar demand pushes rupee down by
5 paise
Year-end corporate demand for the US dollar
pushed the rupee down by about five paise in an active trading
at the interbank foreign exchange market today.
The rupee opened at Rs 39.17-20 per dollar over Friday's
close of 39.15-17, touched the day's low of Rs 39.25-27 and later
finished at Rs 39.20-22, thus showing a fall of about five paise
over the previous close.
The Reserve Bank of India continued to intervene in the
forwards, and brought down the forward premia particularly of March and April, forex dealers said.
The State Bank of India made heavy purchases on behalf of
its corporate clients.
Cash to spot opened higher in the range of 5-6 paise, in
view of the year-end covering by leading banks. However, after
the morning trade, it closed at 3-3.5 paise premium, dealers
said.
Forward premia for March and April opened higher at
130 and 100 closed lower in the range of 120 and 90 paise
premium respectively following the RBI's intervention.
The RBI fixed reference rate at Rs 39.21 per dollar as
against Friday's fix of Rs 39.24.
Forward premium in paise were 89-90 for March, 120-122 for
April, 145-148 for May, 170-172 for June . The six-month's annualised premium was at 8.66 per cent.
Meanwhile, activities were dull and quiet in the cross currency
section and hardly any movement was noticed in the European
currencies.
The rupee moved in the range of Rs 65.74 and Rs 65.60 against
the pound sterling and it was quoted at Rs 32.06 and Rs 30.13
against the mark and yen respectively, dealers
said.
UNI
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