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Market goes to sleep; rupee calm at Rs 42.49/50 vs $

The rupee continued to remain steady against the greenback on a dull interbank foreign exchange market today.

Opening steady at Rs 42.4950/5050, the rupee barely moved and remained almost at that level throughout the day as the market witnessed moderate activities with matching dollar demand and supply. The rupee ended steady at Rs 42.4950/5050.

Dealers said the trading was very thin, as many of the market players were not in a hurry to take their positions in view of the rupee's stability for the last fortnight and in the absence of any immediate market moving factors.

Activities in the forward dollars were also very dull. The forward premia which moved down slightly in the morning, later rose to the opening level and ended nearly steady. The sixth month annualised and yearly premia closed at 6.93 per cent and 7.42 per cent respectively. Cash/spot ended at 1.00-1.25 paise premium while cash/tomorrow finished at 0.50-0.75 paise premium.

The monthwise premia in paise were: February 15-16, March 38-41, April 66-69, May 88-91, June 113-117, July 140-144, August 167-171, September 194-198, October 221-225, November 251-255, December 279-284 and January 307-313.

Meanwhile, the Reserve Bank of India has maintained its reference rate for US dollar at Rs 42.50 today.

In the cross currency, the rupee finished marginally higher against pound sterling and euro while it declined a bit against the Japanese yen. Sterling ended at Rs 69.83 (Rs 69.98), euro at Rs 48.34 (Rs 48.45) and yen at Rs 36.81 (Rs 36.53).

In the domestic money market, the call rates ruled higher on good demand for funds from participants. Call rates closed at 9.00-9.10 per cent.

UNI

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