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Quiet trading limits rupee's gain to one paisa; Rs 42.51/52

The Indian rupee strengthened by one paise against the greenback as a quiet trend prevailed during a range-bound intra-day trading session on the foreign exchange (forex) market in Bombay today.

The rupee opened marginally higher at Rs 42.52/54 per unit, one paise above yesterday's close. Good demand in the morning from market player State Bank of India was met by heavy selling by exporters which resulted in a volatile rupee as it went up to Rs 42.55/56 level at one point, leading dealers said.

The market came down as soon as SBI stopped buying in the afternoon and the rupee finally closed at Rs 42.51/52, recording a recovery of one paise against its previous close.

The cash/tomorrow was quoted at 3.50 to 0.5-1.0 level while the cash spot was quoted at 3-25 to 4 paise level. The six-month annualised premia was fixed at 9.9 per cent.

The Reserve Bank of India on the other hand fixed its reference rate at Rs 42.56 per unit against its previous close of Rs 42.53 per US dollar.

The overseas market on the other hand, was marked with volatility as the US dollar weakened against the major currencies in the world.

The devalutaion of Colombian peso affected the dollar in a major way as it eased compared to Japaneses yen. Elsewhere, it had mixed response and it rose slightly against the German mark and French franc.

The rupee equivalent of dollar for pound sterling was Rs 71.43, for DM was Rs 24.55 and Japanese yen was Rs 31.36.

Meanwhile, the monthly premia in paise are : 30-33 for September, 66-70 for October, 97-102 for November, 130-135 for December, 165-170 for January, 201-206 for February, 227-232 for March, 268-273 for April, 307-312 for May, 340-345 for June, 378-383 for July and 415-421 for August, dealers added.

UNI