COMMENTARY
INTERVIEW
SPECIALS
CHAT
ARCHIVES

Rupee dips, recovers marginally

The Indian rupee weakened early in the morning by about 4 paise, but recovered later due to heavy dollar selling pressure and settled one and half paise lower than Monday's closing of Rs 36.175-185, in a relatively quiet interbank foreign exchange market on Tuesday.

The rupee opened on a weak note at Rs 36.18-19, weakened further to Rs 36.20-21 due to good local dollar demand and later settled down slightly higher than the day's quotes at Rs 36.185-195 at the fag end.

According to leading forex dealers, the rupee, after an initial weakness, depreciated further to a day's low of about four paise during the day, following slightly better local dollar demand and could recover smartly due to renewed dollar selling pressure to close slightly lower than the Monday's closing.

The Reserve Bank of India apparently made dollar purchases but did not intervene in a big way, a dealer said, and added that even the State Bank of India bought dollars in small lots.

Meanwhile, the forward premiums, which initially went up by 4 to 5 paise over Monday's closing levels, later dipped lower by about 2 to 3 paise than the previous levels following some receiving pressure.

The six- month premia was quoted at 5.75 to 6 per cent levels. The cash to spot dollar closed at 0 to 0.25 paisa premium.

The forward premia for Oct was traded between 6 to 7 paise, spot Nov at 16-18, spot Dec for 33-35, spot Jan 50-53, spot Feb 65-68, spot Mar 83-86 and spot April 102-104 paise premium respectively.

On the other hand, the pound sterling witnessed a firm trend while the US dollar and various other curriencies were reportedly inactive for the day, a dealer at the foreign bank said.

UNI