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Rupee steady in a dull market

The Indian unit opened slightly higher at Rs 38.75-80 per US dollar, due to short-covering by the corporate sectors and banks. It was hovering at the same level for some time, but later suppliers entered into the market and sold enough amount of dollar.

Then the Indian rupee strengthened marginally to Rs 38.70-75 during the intraday trading before closing at Rs 38.74-76, leading dealers said, and added that the market giant the State Bank of India reportedly purchased marginal amount of dollar at the fag end of the day.

The central bank remained absent after last the couple of day's paying pressure. Due to that, forward premiums crashed by about 15 paise in the first month compared to opening levels.

The Reserve Bank of India has fixed the reference rate for US dollar at Rs 38.75 as against Rs 38.64 on the last working day.

Nominal amount of export and import booking was conducted in cash and spot basis while marginal amount of export booking was dealt in near forwards.

The US dollar weakened against all world major currencies in view of a possible gulf war. The pound sterling was traded at Rs 64.24, mark at Rs 21.56 and yen at Rs 31.50 (per 100) in cross currency market.

The forward premia crashed following absence of apex bank in the market as dealers were expecting that RBI may intervene in the forward dollar. Cash to spot opened at 3-4 paise premium and closed at 2.5-3 paise premium.

The monthly forward premiums in paise were quoted at 29-30 for Feb, 99-101 for Mar, 165-168 for April, 205-210 for May, 250-254 for June, 290-295 for July, 325-330 for August and 365--375 for September.

UNI