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Rupee declines by 4 paise

The Indian rupee on Tuesday declined by nearly four paise against the US greenback on the heavy dollar buying by the State Bank of India at the interbank foreign exchange market.

The rupee opened at Rs 36.21-22 per dollar and held steady till mid-session, and was seen easing against the dollar as soon as the SBI entered the market around 1330 hours, said a dealer at a leading nationalised commercial bank. The SBI made considerable dollar purchases on behalf public sector units. The rupee dropped to Rs 36.245-255 towards the afternoon, and most of the business was done at that level, dealers said.

Stray deals were also reported at the higher level of Rs 36.25-255, dealers said.

''The New York market was closed on Monday and, therefore, the spot market witnessed hectic activity, and apart from that the SBI might have covered on behalf of offshore oil companies,'' said a dealer at the leading private commercial bank.

The Indian currency finally closed at Rs 36.245/255, showing a net decline of about 03.25-03.75 paise as against the previous day's close of Rs 36.2125-2175.

The monthly forward dollar premia drifted lower marginally. However, the sixth month annualised forward premium rose to 5.31 per cent against 5.15 per cent.

The monthly forward premiums in paise were 4-5 for October, 15-16 for November, 29-30 for December, 48-50 for January, 64-66 for February, 84-86 for March, 100-103 for April and 116-120 for May.

Elsewhere, the RBI has fixed its reference rate at Rs 36.22 per dollar unchanged over Monday's rate of Rs 36.22 per dollar.

The rupee registered sharp losses against the pound sterling. It opened at Rs 58.70 per pound and late closed at Rs 58.84, showing a decline of about 14 paise over the days open.

UNI