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As corporates offload $, market wakes up, rupee strengthens; Rs 42.46/47

The rupee appreciated by three paise against the greenback on good dollar off-loading by corporates and lower demand at the interbank foreign exchange market today.

Opening nearly steady at Rs 42.4900/4950, which itself was the low of the day, the rupee gradually moved up as corporates sold good amount of dollars while the demand remained subdued.

The Indian currency ended at Rs 42.46/47 against Rs 42.49/50 of the previous day, gaining three paise.

Forward premia eased slightly in absence of paying pressure and some receivings. Near forward premia came down by one paise while far-forward premia were lower by 2-3 paise. The sixth-month annualised and yearly premia ended marginally lower at 6.82 and 7.35 per cent as against 6.94 and 7.44 per cent of the previous day.

Meanwhile, the Reserve Bank of India has revised the reference rate for US dollar, two paise lower at Rs 42.48 against Rs 42.50 of the previous day.

Cash / tomorrow ended at 1.00-1.50 paise premium while the cash / tomorrow finished at 0.50-0.75 paise premium. The month-wise premia in paise were: February 14-16, March 38-40, April 66-67, May 87-89, June 113-116, July 139-141, August 166-168, September 194-196, October 221-223, November 248-251, December 278-280 and January 306-309.

In the cross currency market, the rupee weakened marginally against the Japanese yen and euro while it strengthened a bit against the pound sterling. Sterling ended at Rs 69.43 (Rs 69.90), euro at Rs 48.12 (Rs 48.03) and yen at Rs 37.90 (Rs 37.54).

In the domestic money market, the call money interest rates, after ruling between 8.60 and 9.40 per cent, ended marginally lower at 8.90-9.00 per cent.

UNI

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