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Slack $-demand pushes rupee up two paise; Rs 42.44/45

The rupee ended two paise higher against the greenback on slack dollar demand and good supply at the interbank foreign exchange market today.

Opening steady at Rs 42.46/47, which was the day's low, the rupee showed a sign of appreciation by gradually moving up due to lack of dollar buying interest and moderate supply.

The Indian unit ended at Rs 42.44/45 against Rs 42.46/47 of the previous day, gaining two paise from the previous close. Dealers said corporates were selling the US dollar but the demand was very poor.

Forward premia, after moving in a narrow range, drifted lower slightly in the absence of paying pressure and good receivings. Near forwards eased by 2-3 paise while far-forward premia were down by 4-5 paise. The sixth-month annualised and yearly premia closed marginally lower at 6.97 per cent and 7.46 per cent respectively.

Cash/spot ended at 3.00-3.25 paise premium. The month-wise premia in paise were: February 6-7, March 30-32, April 56-58, May 79-81, June 107-109, July 132-135, August 159-162, September 186-189, October 215-218, November 243-246, December 272-275 and January 300-303.

Meanwhile, the Reserve Bank of India revised the reference rate for US dollar one paise lower at Rs 42.45 against Rs 42.46 of the previous day.

In the cross currency, the rupee strengthened slightly against the euro and Japanese yen while it eased a bit against the pound sterling. Sterling ended at Rs 69.05 (Rs 68.91), euro at Rs 47.74 (Rs 48.05) and yen at Rs 37.10 (Rs 37.33).

In the domestic money market, the call rates ruled in the range of 7.50 - 9.10 per cent and closed lower at 8.00-8.10 per cent being the reporting Friday.

UNI

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