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Rupee gains 30 paise

The Indian rupee strengthened further by about 30 paise against the US greenback in a quiet interbank foreign exchange market on Friday.

Encouraged by the Reserve Bank of India's monetary measures announced on Thursday, the market opened steady at 42.85/88. The rupee moved upwards to close at 42.56/58 against the previous close of 42.82/92, gaining about 30 paise.

Major market player State Bank of India was doing the two-way business of buying and selling dollars, dealers said.

Forward premiums continued to be at a higher level on heavy paying pressure, and higher interest rates prevailed on the domestic money market.

Far forward premiums went up further with May ruling about 30 paise higher. Near forwards, except for August, came down marginally. The third month annualised premium quoted lower at 13.92 from 14.30 per cent of the previous day. The sixth month also declined to 12.06 per cent from 12.43 per cent. However, the yearly annualised premium quoted higher at 12.53 as against 11.55 of the previous day.

Cash/spot business were conducted higher at 5-7 paise premium while cash/tom were between 4-6 paise premium.

The monthwise premiums in paise were: August 17-21 (10-13), September 74-82 (75-87), October 117-125 (115-130), November 150-160 (155-170), December 181-195 (190-205), January 220-235 (225-240), February 255-275 (270-285), March 305-320 (305-320), April 350-370 (345-365), May 410-430 (380-395).

The rupee, which had been sinking continuously following The political uncertainty at home and the Asian economic crisis, lost about 113 paise during the fortnight August 6-19. The rupee has staged a smart recovery of about 98 paise for the last two days, after the RBI's measures.

The RBI has revised the reference rate for US dollar 18 paise lower at Rs 42.57 against the Rs 42.75 of the previous day.

UNI