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Weak yen, sliding Asian markets push rupee down by 6 paise; 42.49/51

Weakining of Japanese yen against dollar, and downtrend in Asian markets affected the market sentiments at the interbank foreign exchange market with rupee registering a decline by another six paise to Rs 42.49/51 against the American greenback in a lacklustre trade today.

The Indian unit opened at Rs 42.43/46 per dollar, touched the day's low of Rs 42.5150/5200 and finally ended at Rs 42.49/51, dealers said. There was moderate dollar buying by foreign banks and corporates during the day.

The forward dollar premia also firmed up further due to paying pressure, they said.

State Bank of India, the major market player had nominal business while, there was considerable merchant covering done by importers, leading dealers said.

Cash-spot business was conducted between 0.25 - 0.50 paise premium.

On an annualised basis forward dollar premiums for one month closed at 4.76 per cent against 4.05 per cent, three months premium closed at 6.48 against 6.03 per cent, six months closed at 7.51 as against 7.35 per cent and one year premia ended at 8.51 per cent as against 8.34 per cent.

A senior forex dealer at the leading private commercial bank said one of the foreign banks had some outward remittances which also resulted in rupee depreciation.

Another dealer said that there is no chance for rupee's appreciation in the coming days.

Monthly forward premiums in paise were July 0.50-1.50, August 18-20, September 41-43, October 71-74, November 101-104, December 132-136, January 162-166, February 194-198 and March 231-235.

In the overseas market, the yen weakened against US dollar, while pound and mark remained steady.

In the cross-currency deals, the rupee opened at 69.68 against British pound and closed lower at Rs 69.80 against the previous close of Rs 69.69 per pound. The Indian unit ended at Rs 23.72 against deutsche mark from the previous day's close of Rs 23.76. The currency finished higher at Rs 29.97 against Japanese yen from Wednesday's close of Rs 30.16.

UNI