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Rupee gains 4 paise, closes at 42.55/56

The rupee appreciated by four paise against the US greenback on better dollar sales and moderate demand on the interbank foreign exchange (forex) market today.

The rupee opened higher at Rs 42.52/55, further moved up to 42.51/53 level in the morning when the market was very dull and the dollar demand was very low.

However, in the afternoon, the rupee weakened upto 42.57/58 on fresh buying by banks and corporates before closing at Rs 42.55/56 against the previous close of 42.59/60.

Forward premia were marginally up due to paying pressure and less receiving. The sixth month and annualised premia were quoted higher at 7.78 per cent (7.75) and 8.92 per cent (8.95) respectively.

Cash/ spot business were conducted between 0.75 and 1.25 paise premium while cash/TOM was level to 0.25 paise. The month-wise premia in paise were: July 3-5, August 27-32, September 56-61, October 87-90, November 109-114, December 140-145, January 175-180, February 216-221 and March 240-245.

Reserve Bank of India has fixed the reference rate at Rs 42.52 against Rs 42.60 the previous day. In the domestic money market, the call rates opened at 5 to 5.15 after moving in a very range closed at 5 to 5.25 per cent.

In the overseas market, pound sterling and deutsche mark were steady against US dollar while yen strengthened. The rupee appreciated against sterling, slightly weakened against DM and yen and quoted Rs 69.55 for sterling, Rs 23.76 for DM and Rs 30.59 for yen.

UNI