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Market-moving factors take rest; rupee steady in dull trading

• Rs 43.42 vs $
• Rs 45.70 vs euro
• Rs 69.34 vs pound
• Rs 37.84 vs yen (100)

The Indian rupee moved in a narrow range and closed steady at Rs 43.4150/4200 on a dull interbank foreign exchange market today.

The rupee opened steady at Rs 43.4150/4250, hovered around the opening with just one paisa movement on both sides and closed at the opening level itself at Rs 43.4150/4200, unchanged from the previous day's close of Rs 43.4150/4250. The forex market remained dull throughout the day in the absence of any market moving factors.

Corporate dollar demand was very moderate and easily met by scattered dollar sales by banks, dealers said and added that major market players like State Bank of India did not actively participate in the trading and did very nominal two-way business.

Forward market also remained dull as the call money rates nearly stabilised and premiums which witnessed little movement closed a bit lower. The sixth month and annualised premiums ended at 4.81 per cent and 5.05 per cent as against 4.85 per cent and 5.07 per cent of the previous day's close.

Cash/tomorrow and cash/spot premiums finished at 1.00-1.25 paise and half paise respectively. The month-wise premiums in paise were: August 8-9, September 24-25, October 40-41, November 55-56, December 72-73, January 94-95, February 110-113, March 129-132, April 148-151, May 167-170, June 185-188 and July 205-208.

Meanwhile, the Reserve Bank of India maintained the reference rate for US dollar at Rs 43.42.

In the cross current, the rupee appreciated against pound sterling and euro while it remained nearly steady against yen. Rupee ended against sterling at Rs 69.34 (69.70), euro at Rs 45.70 (45.93) and yen at Rs 37.84 (37.86).

At the interbank call money market, the call rates opened slightly higher at 10-10.05 per cent, hovered around that level and closed steady at 9.90-10.00 per cent.

In tokyo forex market, the yen slipped in afternoon trade as the currency market punted that the US inflation might boost the dollar. The dollar stood at 114.80/90 yen, up from 114.65 in late New York trading on Monday, while the euro, after a record low of 120.77 yen in early Asian trade, had recovered some ground to 121.27/38.

UNI

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