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Rupee gains 3 paise

Despite the United States's statement that it has not decided to lift the sanctions imposed on India, the rupee further strengthened by three paise against the US greenback at the interbank foreign exchange.

Reports of the US senate empowering President Bill Clinton to lift the sanctions on India had helped in changing the market sentiment since Thursday, dealers said.

On Friday, the market was very quiet and the rupee ruled in a narrow range. The demand for dollar was rather low and the dollar sales by banks and corporates moderate, dealers said.

The rupee opened higher at 42.49/52, slightly eased to 42.55/57 level in the mid-morning and again strengthened to 42.51/53 level at close against Rs 42.55/56 of the previous day.

Forward premiums also came down on better receiving and nominal import covering.

The sixth month and yearly premiums were quoted lower at 7.65 (7.98) and 8.50 (8.92) per cent.

Cash/spot business was conducted between 1.25-1.50 paise premium while the cash/tom was done between 1.00-1.25 paise.

The monthwise premiums in paise were: July 1-3, August 23-26, September 52-56, October 81-86, November 111-115, December 141-145, January 171-175, February 203-207 and March 236-241.

Nominal import booking was conducted in near and far forwards, dealers said.

The Reserve Bank of India has fixed the reference rate for the US dollar at Rs 42.56 against Rs 42.52 of the previous day.

In the overseas market, the pound sterling, deutsche mark and Japanese yen remained almost steady against the US dollar.

The rupee was slightly up against yen while it was steady against the sterling and dm.

The Indian unit quoted at 69.81 per pound, 23.79 for dm and 30.40 for yen.

UNI