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Quiet trading keeps rupee steady; Rs 42.48/50

A range-bound trading was witnessed as Indian rupee closed nearly steady against the US dollar on the interbank foreign exchange (forex) market in Bombay today.

The dollar opened lower at Rs 42.43 on enough supply of dollar, but, due to demand in the afternoon session, the Indian rupee weakened to Rs 42.51/52 before closing at almost yesterday's level of Rs 42.48/50, leading dealers said.

There was no specific demand, only general remittance. But, general buying by the corporate sectors and banks fluctuated the rupee in narrow band. Similarly, the forward premiums also remained quiet. In the morning session, premia moved higher on good demand, but the Reserve Bank of India intervened in the forward dollar mainly in month of October and December which pushed the premiums to previous low levels, dealers said.

The call money interest rate was quoted at 7.50-7.75 per cent. The yearly annualised premia was quoted at 10.54 per cent and six month was at 10.43 per cent, they added.

In the overseas market, the deutche mark was traded at Rs 23.63, pound sterling at Rs 69.59 and Japanese yen at rs 29.38.

The RBI's reference rate for the US dollar was Rs 42.50 as against Rs 42.48 on the last working day.

A nominal amount of export booking was done cash to spot basis while marginal amount of import booking was conducted in near forwards in merchant booking section.

The cash to spot dollar was traded at 1.5 to 2.00 paise premium. The month-wise premiums in paise were quoted at 3.00--6.00 for August, 53.00-58.00 for September, 95.00--100.00 for October, 126.00-131.00 for November, 164.00--169.00 for December, 200.00--206.00 for January, 223.00-228.00 for February and 275.00-282.00 for March in forwards section.

UNI