COMMENTARY
INTERVIEW
SPECIALS
CHAT
ARCHIVES

Commercial banks purchases pushes rupee down slightly

Heavy dollar buying by the State Bank of India and leading commercial banks at the late hours in the interbank foreign exchange market on Wednesday pushed down the rupee by about 2 paise to close at 36.375-38 against the US greenback.

The Indian currency opened at Rs 35.36, firmed up to Rs 36.33 till midsession and hovered at this high level for quite some time. However, at the end of session, SBI entered the market and made considerable dollar purchases. Other banks too bought dollars, resulting in a decline of the rupee to Rs 36.375-38 level, dealers said.

The higher dollar-rupee rates also reflected in the forward dollar premiums, with the forward premia closed about 3-4 paise higher from the previous levels, dealers said.

Cash-spot business was done between 0.50-0.75 and 0.75 and 100 paise premium. Dealers attributed the higher cash spot rate to the tight call money market.

The Reserve Bank of India fixed the reference rate at Rs 36.36 as against previous day's rate of Rs 36.38 per dollar.

The monthly forward premiums in paise were for November 13-15, December 31-34, January 52-54, February 71-74, March 93-96, April 116-119, May 134-137, June 155-157, July 177-179, August 197-200 and September 216-220 paise respectively.

Elsewhere, the rupee closed at Rs 61.10 against the pound sterling, Rs 21.03 per Deutsche mark and Rs 29.67 per 100 Japanese yen.

UNI