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Range-bound trading keeps rupee steady; Rs 42.34/37

The rupee opened steady at Rs 42.33/36, moved down to Rs 42.38/39 in the morning due to some dollar demand, and remained almost at the same level till mid-session. Later in the afternoon it strengthened on fresh dollar sales and lower demand and touched the high of Rs 42.33 before closing at Rs 42.34/37 against the previous close of Rs 42.35/36.

Dealers said the US currency fell against most of the European currencies. They estimated the dollar sales worth $ 30 billion including the rupee. There were hectic activity in the cross currency market too.

Forward premia, which moved down earlier, closed a bit higher on some paying pressure towards the end. The 3rd month, 6th month and yearly annualised premiums were quoted slightly higher at 7.43 per cent, (7.20), 8.47 per cent (7.97) and 8.87 per cent (8.70 ) respectively.

The Reserve Bank of India has revised the reference rate for $ 8 paise lower at Rs 42.37 against Rs 42.45 of the previous day.

The cash/spot and cash/tomorrow were quoted at 2.50-3.00 paise and 0.25-0.50 paise premium respectively. The month-wise premia in paise were : October 11-14, November 36-39, December 63-67, January 93-98, February 125-130, March 158-163, April 193-198, May 226-231, June 259-264 and July 283-298.

In the overseas market, the pound sterling, deutsche mark and Japanese yen strengthened against the US dollar. The rupee weakened against pound sterling, DM and yen and was quoted for sterling at Rs 73.00 (71.61), for DM at Rs 26.45 (24.23) and for yen Rs 37.05 (33.95).

In the domestic money market, the call rates ruled between 8.00 and 8.10 per cent during the day and closed at the same level.

UNI