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SBI in two-way business, rupee edges up one paisa in dull trading; Rs 42.29/30 vs $

The rupee after moving in a narrow range ended one paise higher against the greenback in a dull interbank foreign exchange market today.

Opening slightly lower at Rs 42.31/32, the rupee further declined to Rs 42.3250/3350, which was the low of the day, in the morning on some dollar demand by corporates and banks. But later in the afternoon, fresh dollar sales by banks and lower demand pushed the rupee up and closed at Rs 42.29/30, one paise higher as compared to Rs 42.30/31 of the previous day.

Dealers said the market was very dull. State Bank of India had a nominal two-way business of buying and selling, they added.

Forward premia, which moved up in the morning, later came down and were closed marginally higher on moderate paying pressure coupled with lower receiving. Near forwards remained nearly steady while far forwards were up by 2/3 paise. The 3rd month, 6th month and yearly annualised premia were quoted a bit higher at 6.22 per cent, 7.42 per cent and 7.80 per cent respectively.

Meanwhile, the Reserve Bank of India has revised the reference rate for US dollar two paise higher at Rs 42.33 against Rs 42.35 of the previous day.

Premia on cash/spot business was 1-1.50 paise and cash/tomorrow 0.75-1.25 paise. The month-wise premia in paise were: November 8-11, December 28-31, January 55-58, February 81-86, March 112-117, April 143-148, May 173-178, June 202-207, July 231-236, August 260-266, September 288-294 and October 317-322.

In the domestic money market, the call rates ruled easy today being the reporting Friday. Opening lower at 5.50-6.50 per cent, the rates moved up to eight per cent on repo paying pressure before closing at 7.50-8.00 per cent.

In the overseas market, pound sterling, deutsche mark and yen remained nearly steady against the US dollar. The rupee slightly weakened against sterling and DM but strengthened against yen. Sterling was quoted at Rs 70.35 (70.09), DM at Rs 25.48 (25.45) and yen at Rs 35.80 (35.95).

UNI

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