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Range-bound rupee ends one paise lower against $; Rs 42.54/55

The rupee, after moving in a very narrow range, ended one paise lower against the greenback on a dull interbank foreign exchange market today.

Opening steady at Rs 42.54/55, the rupee ruled in a very narrow range of about two paise today as the market witnessed very less activity. The rupee slightly improved to Rs 42.53/54 level around noon and later slipped to its opening level.

The Indian currency closed at Rs 42.54/55 against the previous close of Rs 42.53/54, losing one paise of its value.

Forward premia ended slightly higher on some paying pressure. Monthly premia moved up by one/two paise. The one month annualised premium moved up marginally to 5.06 per cent from 4.84 of the previous day, third month at 6.32 (6.14), sixth month at 7.54 (7.45) and yearly to 8.48 per cent (8.41).

Meanwhile, the Reserve Bank of India has fixed the reference rate for US dollar one paise lower at Rs 42.54 against Rs 42.55 of the previous day.

Cash/spot business conducted at 1.50-2.00 paise premium and cash/tomorrow at level to 0.25 paise premium. The month-wise premia in paise were: December 11-13, January 32-34, February 57-59, March 87-89, April 119-121, May 151-153, June 182-186, July 216-220, August 252-254, September 283-287, October 315-320 and November 348-353.

The overseas market was also very quiet with pound sterling, deutsche mark and yen remaining nearly steady against us dollar. The rupee ended at Rs 70.95 for sterling, Rs 24.45 for DM and Rs 35.82 for yen.

In the domestic money market, the call rates closed steady at 7.50-8.00 per cent level, in spite of reporting Friday. Opening lower at 6.50-7.00, the rates hovered in the same range till noon and moved upto 7.50-8.00 at close due to some repo paying pressure.

UNI

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