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Rupee gains 30 paise against dollar

The rupee opened on a firm note at Rs 38.60-65 per dollar compared to Friday's close of 38.7-75, rallied further to trade between 38.40 and 38.50 level for the most part of the day and finally appreciated further to settled down at 38.34-39 levels at the fag end.

According to leading forex dealers, the rupee, with an initial firmness, was reported trading in two-way with buying as well as selling pressure. The State Bank of India bought dollars coupled with import covering at Rs 38.40 level. But as the SBI finished the buying, there was good sales witnessed which resulted in rupee appreciation, the dealers said.

The rupee appreciated today as there was good two days of dollar supply , with yesterday being Republic Day holiday, remarked another dealer. Meanwhile, the forward premiums which initially came under pressure due to import covering, dipped lower as soon as the Reserve Bank intervened in the market with the six-month annualised premium quoted at 19.29 per cent, a dealer said.

The cash to spot dollar opened at 14 to 17 paise premium and closed at 10 to 12 paise premium. The monthly premiums were quoted at spot/Feb 123-126 paise premium, followed by spot/March 185-188, spot/April 250-260, spot/May 285-290, spot/June 333-371, spot/July 365-371 and spot/Aug 393-398 paise premium respectively.

On the other hand, the overseas market witnessed a steady trend with the pound sterling being quoted 150 points lower against the dollar yen, a dealer said. While the pound sterling opened at Rs 63.99 against the rupee and closed at Rs 63.35.

UNI