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Rupee gains two paise, Rs 42.31/32

Rupee ended two paise higher against the US dollar on the interbank foreign exchange market today.

The rupee opened steady at Rs 42.33/34, remained almost in the same range till noon with moderate dollar demand and matching dollar sales. But in the afternoon, the rupee started moving up and touched the day's high of Rs 42.31/32 level on renewed dollar sales by corporates and banks and lower demand.

The Indian unit closed at Rs 42.31/32 against the previous close of Rs 42.33.34 gaining two paise.

Dealers said that major market player State Bank of India was bidding dollar at Rs 42.31 level which arrested further strenghtening of the rupee. The rupee would have appreciated beyond Rs 42.30 level, if SBI would not have intervened, dealers added.

Forward premia were marginally down between two and six paise on good receiving and nominal paying pressure. The third month, sixth month and yearly annualised premia were quoted lower by 6.70 per cent, 8 per cent, and 8.65 per cent respectively.

Cash/spot business was conducted at 0.75-1.00 paise premium. Cash/tomorrow was down at 0.25-0.50 paise premium. The month-wise premia in paise were: October 7-9 (9-11), November 28-31 (32-35), December 51-56 (58-61), January 81-84 (87-90), February 111-116 (117-120), March 145-150 (152-155), April 178-183 (186-189), May 211-116 (219-224), June 244-249 (252-257) and July 279-284 (287-290).

Meanwhile, the Reserve Bank of India has revised the reference rate for US dollar one paise lower at Rs 42.34 against Rs 42.35 of the previous day.

In the overseas market, the dollar was ruling nearly steady against pound sterling, deutsche mark and Japanese yen, dealers said. In the cross currency market, the rupee remained almost steady against sterling, DM and yen and was quoted at Rs 71.98 for sterling, Rs 25.83 for DM and Rs 35.59 for yen.

In the domestic money market, the call rates ruled higher between 9.00-9.50 per cent on the interbank call money market throughout the day, on good demand for funds from participants due to repo paying pressure.

UNI