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Range-bound market keeps rupee steady; Rs 42.46/47

The rupee ended steady against the greenback on a quiet and range-bound interbank foreign exchange market today.

Opening marginally lower at Rs 42.4650/4750, the rupee witnessed little fluctuation, and remained in the range of Rs 42.4625-4750 level throughout the day before closing at Rs 42.4650/4700 against Rs 42.46/47 of the previous day.

The market was quiet with moderate activities, dealers said adding that corporates continued to sell us currency while State Bank of India was reportedly buying it.

Forward premia further eased marginally in the absence of paying pressure and moderate receivings. Near forwards came down by 2-3 paise, while far forwards were lowere by 4-5 paise. The sixth month annualised and yearly premiums ended a bit lower at 6.74 per cent and 7.30 per cent as compared to 6.82 per cent and 7.35 per cent of the previous day.

Meanwhile, the Reserve Bank of India revised the reference rate for $ two paise lower at Rs 42.46 against Rs 42.48 of the previous day.

Cash/spot finished at 2.25-2.50 paise premium while cash/tomorrow ended at 0.50-0.75 paise premium. The month-wise premia in paise were: February 12-13, March 34-37, April 62-64, May 84-86, June 110-112, July 135-137, August 162-164, September 188-192, October 214-217, November 243-246, December 272-275 and January 297-302.

In the cross currency, the rupee appreciated marginally against the euro and Japanese yen while it remained nearly steady against sterling. Sterling ended at Rs 69.48 (Rs 69.43), euro at Rs 47.80 (Rs 48.12) and yen at Rs 37.41 (Rs 37.90).

In the domestic money market, the call money interest rates, ruled in a narrow range between 8.90 and 9.10 per cent level and ended steady at 8.90-9.00 per cent with matching liquidity and demand.

UNI

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