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June 3, 1998

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Rupee dips by three paise

The Indian rupee saw a difference of about three and more paise against the US greenback due to some customers buying but was defended by the State Bank of India's active dollar selling in an otherwise quite and dull trading at the interbank foreign exchange (forex) market today.

The rupee opened steady at Rs 41.75/78 per dollar, and hovered at the same levels till the mid-session. It witnessed a low of Rs 41.81 for the day for some demand from the corporates. The SBI's dollar selling helped the rupee to depreciate further with finally settling a bit lower at Rs 41.78/80 levels.

According to the forex dealers, the market witnessed a range bound trading with not much movement in the rupee resulting in dull trading. Even the forward premiums moved in a very narrow range with the six-month annualised premium quoted at 8.88 per cent. The cash to spot dollar business was done at 0.25 to 0.50 paise premium, a dealer said.

The monthly premiums were, in paise, June 18-19, July 48-50, August 81-84, September 113-116, October 147-150, November 178-181, December 213-216, January 247-250, February 277-282, March 310-314, April 340-345 and May 371-376 paise.

The yen was reported higher against the dollar while the other currencies remained steady, a dealer said.

The Reserve Bank of India maintained the reference rate at Rs 41.80 per dollar for today.

UNI

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