COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Rupee slides to Rs 42.83 to $

At the interbank foreign exchange market, the Indian rupee declined sharply by seven paise against the greenback on political uncertainty .

The currency opened marginally higher at Rs 42.73/75, moved up further to Rs 42.72/73 level in the morning, expecting some favourable development at the Centre. But the Samajwadi Party's new stand refusing its support to the Congress or the Bharatiya Janata Party has disappointed the market.

The Indian rupee came under pressure as importers started heavy greenback buying, pushing down the rupee downwards. The Indian unit ended at Rs 42.81/83 as against Rs 42.74/76 of the previous day. Dealers said State Bank of India has not actively participated in the market today.

Activity in the forward market was relatively lower and premia ended nearly steady. The six-month annualised premium closed steady at 6.62 per cent, while the yearly premium ended a bit higher at 7.13 per cent.

Cash/spot ended at 2.5-3.00 paise premium while cash/tomorrow finished at 1.75-2.00 paise premium. The month-wise premia in paise were: April 0-1, May 20-22, June 43-44, July 65-66, August 89-91, September 115-118, October 143-145, November 171-174, December 200-202, January 228-230, February 253-255 and March 280-282.

Meanwhile, the Reserve Bank of India maintained the reference rate for US dollar at Rs 42.74.

In the cross currency, the rupee ended against sterling at Rs 69.09, euro at Rs 45.48, and yen at Rs 35.77.

In the domestic money market, the call rates ruled between 7-8 per cent level and closed lower at 7.50-8.00 per cent, from 8.20-8.40 per cent of the previous day, due to reporting Friday.

UNI

Business news