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Rupee settles steady against dollar

The Indian currency, after an initial firmness, settled more or less steady compared to Monday's levels against the US greenback following late heavy dollar selling pressure in a choppy trade at the interbank foreign exchange market on Tuesday.

The currency opened on a firm note at Rs 36.28-30 per dollar, moved up further to Rs 36.31-33 level following some short covering by the local foreign banks coupled with month-end dollar demand. However, later, as exporters entered the forward section and heavy dollar selling prevailed. As a consequence, the rupee recovered smartly and settled at Rs 36.26-27 levels.

Meanwhile, the forward premiums went up by half per cent due to good export covering and the six month premium was quoted at 6.4 per cent for Tuesday. The cash to spot dollar was quoted at 0.75 to one paisa premium.

The monthly premiums were quoted at November 16-17, December 34-36, January 54-57, February 74-76, March 98-101 and April 117-120 paise premium respectively.

On the other hand, the overseas market witnessed a very choppy market with the US dollar losing by about 300 points in a single day on Tuesday as the European and the Asian stock markets crashed, resulting in heavy dollar selling pressure in a directionless trading, said a forex dealer at the foreign bank.

Elsewhere, the Reserve Bank of India fixed the reference rate at Rs 36.29 per dollar over Monday's fix of Rs 36.23.

UNI