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Exporters go on dollar-selling spree; rupee gains four paise vs $; Rs 42.29/30

The rupee ended four paise higher against the greenback on better dollar sales at the interbank foreign exchange market today.

Opening higher at Rs 42.30/31, the Indian unit exhibited a steady upward trend and rose to Rs 42.29/30 around noon on better dollar sales by banks and corporates while the demand for the currency was very low. The rupee remained at that level thereafter and closed at the same level at Rs 42.29/30 against Rs 42.33/34 of the previous day.

Dealers said that market was very quiet and the rupee moved upwards only with the low and high of the day being the opening and closing itself. Mainly exporters were seen in the market selling dollars while importers were absent, dealers said.

Forward premia came down on better receiving and lower paying pressure. Near forwards were lower by about five paise while far forwards eased by about nine paise. The 3rd month, 6th month and yearly annualised premia were quoted lower at 5.94 per cent, 7.13 per cent and 7.60 per cent respectively.

Cash/spot businesses were done at 0.25-1.00 paise premium while cash/tomorrow was at 0.25-0.50 paise premium. The month-wise premia in paise were November 11-13, December 29-34, January 57-60, February 82-85, March 112-116, April 141-145, May 171-175, June 200-205, July 229-234 and August 258-263.

Meanwhile, the Reserve Bank of India had fixed the reference rate for US dollar at Rs 42.30 as against Rs 42.37 of the previous day. In the domestic money market, the call rates ruled between 8.00 and 8.50 per cent throughout the day before they closed at 8.25-8.40 per cent.

In the overseas market, the pound sterling weakened slightly against the US dollar while deutsche mark and Japanese yen strengthened marginally. The rupee was quoted at Rs 70.66 for sterling, Rs 25.67 for DM and Rs 36.65 for yen.

UNI