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Nominal demand matches adequate supply; Rs 42.56/57

The Indian rupee depreciated by one paise in a quiet intra-day trading session at the foreign exchange (forex) market in Bombay today.

The rupee opened steady at Rs 42.55/56 per US dollar. A squarish trend prevailed in the market as nominal demand matched the adequate supply. Market players were seen on both the buying and selling counters and the rupee was seen ruling around Rs 42.55/57 paise level, leading dealers said.

As soon as State Bank of India stopped purchasing, the rupee depreciated by one paise and closed at Rs 42.56/57 level.

The cash/tomorrow was quoted at 0.50 to 0.75 paise while the cash/spot was at 1 to 1.50 paise level. The six-month annualised premia was 8.64 per cent for the day.

Meanwhile, the Reserve Bank of India fixed its reference rate at Rs 42.56 per US dollar.

In the forwards market, the monthly premiums in paise were quoted at 15-17 for September, 45-48 for October, 75-78 for November, 106-109 for December, 139-143 for January, 169-174 for February, 203-207 for March, 240-245 for April, 275-280 for May, 310-317 for June, 346-352 for July and 380-386 for August.

In the overseas market, the US dollar was a bit quiet against all major currencies except the pound sterling against which it strengthened slightly. Reports state that the plunge in dollar in recent times is due to the fears that the American global investments are on a shaky ground.

The rupee equivalent of dollar was as follows : pound sterling Rs 70.60, deustche mark Rs 24.63, Japanese yen rs 32.17 and Swiss franc Rs 30.13.

UNI