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Rupee weakens by 3 paise

The spot dollar opened slightly up at Rs 39.69-71 and due to hectic selling pressure from foreign commercial banks and corporate sectors, it gradually came down to Rs 39.67-69. At this level, the State Bank of India entered the market, injecting moderate amounts of dollars which strengthened the Indian currency to Rs 39.63 in intraday trading. Finally, the rupee finished at Rs 39.63-66, leading forex dealers said.

The forwards premium came down marginally on slack support by the exporters. The cash to spot dollar was traded at 0.50 paisa premium. The six-month annualised premia was worked out to be at 7.4 per cent.

The monthwise premiums in paise were: 1-2 for April, 15-16 for May, 25-26 for June, 36-38 for July, 61-64 August, 91-93 for September, 152-155 for October, 181-184 for November, and 209-212 for December.

Only short term import booking was witnessed in the merchant sector.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 39.70 as against Rs 39.71 on the last working day.

The pound sterling was quoted at Rs 66.44, mark at Rs 21.90 and yen at Rs 30.02 in the cross currency market.

UNI