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Corporate demand for $ pushes rupee down; Rs 43.23

• Rs 43.23 vs $
• Rs 45.22 vs euro
• Rs 68.00 vs pound
• Rs 36.32 vs yen (100)

The Indian rupee closed marginally lower at Rs 43.2250/2350 on corporate dollar demand at a relatively active interbank foreign exchange market today.

The Indian unit opened steady at Rs 43.20/22, came under pressure due to heavy corporate dollar buying in the morning and slid to a low of Rs 43.26/27 around noon.

However, the rupee recovered partially the intra-day loss in the afternoon on fresh dollar sales by banks and cancellation of earlier booked contracts. It ended at Rs 43.2250/2350, slightly lower from the previous day's close of Rs 43.21/22.

Tracking the spot rupee, forward premia moved up initially, but eased later and closed a bit higher from the previous day's levels.

Far forwards hardened by two paise while near forwards closed nearly steady. The sixth month and yearly annualised premia finished at 4.34 per cent and 4.76 per cent respectively, as compared to 4.29 per cent and 4.71 per cent of the previous day.

Meanwhile, the Reserve Bank of India fixed the reference rate for US $ at Rs 43.26 as against Rs 43.20 of the previous day.

The rupee weakened against pound sterling and euro while it rose slightly against Japanese yen. Rupee closed against sterling at Rs 68.00 (67.97), euro at Rs 45.22 (44.84) and yen at Rs 36.32 (36.53).

At the interbank call money market, the call rates ruled easy on easy liquidity and moderate demand for funds. Call rates ended slightly lower at 7.90-8.05 per cent as against 8.00-8.25 per cent of the previous day.

UNI

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