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SBI continues spectator act, trading becomes lacklustre, rupee remains steady: Rs 42.24/25

The Indian unit opened at Rs 42.25/26, touched the day's low of Rs 42.27/28 on some dollar buying by market participants to clear month-end remittances. However, the rupee recovered on State Bank of India's appearance in the market towards the afternoon, dealers said.

SBI neither bought dollars nor sold but just inquired, a chief forex dealer at the leading private commercial bank said and added that even on SBI's market interest, the rupee quoted at Rs 42.2450/2550. The rupee remained steady to that level till end of trading, he added.

According to dealers, the market has ample liquidity, but demand has so far not not picked up.

The Reserve Bank of India fixed the reference rate at Rs 42.27 per US dollar as against the previous fix of Rs 42.26.

Cash spot business was done at 0.75-1.00 paise premium while cash-tomorrow was traded at 0.25-0.50 paise premium.

Monthly forward premium in paise were November 18-20, December 39-43, January 68-72, February 92-97, March 121-127, April 151-157, May 182-187, June 211-217, July 241-247, August 271-277, September 301-307 and October 330-340 paise premium.

The six month premia closed at 7.31 per cent while the annualised yearly premia closed at 7.93 per cent.

In the overseas, the dollar continued to weaken against other European currencies following rumours of possible devaluation of Brazilian currency.

Back home, the rupee traded in the range of Rs 70.71 and Rs 70.74 against pound sterling. The rupee closed at Rs 25.64 against deutsche mark and it finished at Rs 36 against the Japanese yen (100 yen).

UNI