COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Rupee makes smart recovery, closes up eight paise at Rs 42.73 vs $

After a week-long depreciation, the Indian rupee today staged a smart recovery and ended about eight paise higher against the greenback on encouraging political developments, at the interbank foreign exchange market today.

The Indian currency opened at Rs 42.76/78, later rallied up on fresh corporate dollar off-loading, influenced by the decision of four-member Indian National Lok Dal and the sole Rashtriya Janata Party member to support the government, which brightened the prospects of the Vajpayee goverment winning the crucial vote of confidence in the Lok Sabha tomorrow.

The rupee ended at Rs 42.72/73 as against Rs 42.79/81 of the previous day, gaining about eight paise.

The rupee fell sharply by about 25 paise on April 6, depreciating about 36 paise till Thursday.

Forward premia crashed on good receivings. Near forwards premia eased by 3-4 paise, while far forwards fell by 15-20 paise. The sixth-month annualised and yearly premia closed lower at 6.45 and 7.20 per cent respectively.

Cash/spot and cash/tomorrow finished at 1.25-1.75 paise and 1.00-1.50 paise respectively. The month-wide premia in paise were: April 4-6, May 25-28, June 48-50, July 72-74, August 96-99, September 122-125, October 151-154, November 180-184, December 208-212, January 236-239, February 262-265 and March 289-292.

In the cross currency, the rupee ended at Rs 68.73 to the sterling, Rs 45.65 to the euro and Rs 36.06 to the Japanese yen (100).

Meanwhile, the Reserve Bank of India fixed the refernence rate for US dollar at Rs 42.76 today against Rs 42.83 on the previous day.

In the domestic money market, the call rates closed marginally higher at 8.00-8.10 per cent.

UNI

Business news