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Rupee edges up one paisa against $ in dull market; Rs 42.45/46

The rupee ended one paise higher at Rs 42.45/46 against the greenback at a dull interbank foreign exchange market today.

Opening nearly steady at Rs 42.46/47, the rupee barely moved, hovering around the opening level till noon and later eased marginally to close at Rs 42.45/46 against Rs 42.4650/4700 of the previous day, gaining one paise.

Dealers said the market continued to be very dull with thin trading volume. Although corporates were selling dollars moderately, lack of buying interest for the greenback, in view of the rupee's stability and absence of any market moving factors, helped the rupee gain slightly, they added and opined that the rupee would remain stable and even appreciate marginally till the presentation of the Budget.

Forward markets also witnessed lower activities. As the spot dollar came down slightly, the forward premia also eased marginally. Near forward premiums ended about one paise lower while the far-forwards remained nearly steady. The sixth-month annualised and yearly premia ended at 6.64 per cent and 7.25 per cent respectively.

Cash/spot ended at 1.00-1.25 paise premium, while cash/tomorrow finished at 0.25-0.50 paise premium. The month-wise premia in paise were: February 10-11, March 31-33, April 57-59, May 80-82, June 106-108, July 131-133, August 158-160, September 185-188, October 211-214, November 239-242, December 267-270 and January 295-300.

Meanwhile, the Reserve Bank of India maintained its reference rate for $ at Rs 42.47.

In the cross currency, the rupee also strengthened marginally against pound sterling, euro and Japanese yen. Sterling ended at Rs 69.37 (Rs 69.71), euro at Rs 47.73 (Rs 48.05) and yen at Rs 37.34 (Rs 37.60).

In the domestic money market, the call money interest rates after ruling between 8.55 and 8.85 pr cent, closed slightly lower at 8.65-8.75 per cent with good demand for funds and comfortable liquidity in the system.

UNI

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