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Rupee keeps still, 42.53/53 versus $

The rupee remained rock steady against the US greenback on a dull inter-bank foreign exchange market today.

Opening one paisa lower at Rs 42.54/55 from the previous close of Rs 42.53/54, the rupee remained at that level till the mid-session, appreciating slightly later to close at Rs 42.53/53.

Dealers said the market was very dull and witnessed limited activity. Forward premia ended slightly lower on scattered receiving and lower paying pressure.

The six-monthly and annualised premia were quoted at 7.30 and 8.22 per cent, respectively.

Meanwhile, the Reserve Bank of India fixed the reference rate for the dollar at Rs 42.55 against Rs 42.53 yesterday.

Cash/spot and cash/tomorrow ended higher at premia of 250-300 and 150 -200 paise, respectively. The month-wise premia in paise were: January 18-21, February 38-41, March 65-68, April 97-101, May 125-129, June 155-159, July 186-190, August 222-224, September 253-257, October 285-290 and November 318-323.

The overseas market also remained quiet, with the dollar remaining steady against the pound sterling, Deutsche mark, and Japanese yen. The rupee ruled steady against the sterling and DM while it weakened a bit against the yen and ended at Rs 71.38 (Rs 71.46 yesterday) for the sterling, Rs 25.45 (Rs 25.44) for the mark, and Rs 36.67 (Rs 36.37) for the yen.

In the domestic money market, liquidity tightening continued on heavy covering by borrowers ahead of the weekend and Christmas holidays and the call rates ended higher at 9.10-9.20 per cent after ruling between 8.90 and 9.35 per cent during the day.

UNI

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