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Like govt, like rupee: under pressure; Rs 42.75 vs $

The Indian rupee declined by about five paise against the greenback in an active trading session at the interbank foreign exchange market today.

The currency opened at Rs 42.69/72 per dollar, touched the day's low of Rs 42.78/80 immediately after the opening on heavy corporate covering in the wake of ongoing political happenings in the country's capital. The market player, State Bank of India reportedly made purchases at Rs 42.74 level.

Finally, the rupee ended at Rs 42.74/75 against the previous close of Rs 42.69/70 per dollar.

Cash-spot dollar was traded at 1.00 -1.25 paise premium, cash-tomorrow was conducted between 0.75-1.00 paise premium.

The monthly premia in paise were quoted at 8-10 for April, 31-34 for May, 55-57 for June, 80-82 for July, 106-109 for August, 135-137 for September, 165-167 for October, 195-197 for November, 225-227 for December, 255-257 for January, 281-283 for February and 308-310 for March.

Leading forex dealers said that the rupee is currently under pressure due to political uncertainty and is likely to move southward in the next couple of days.

The forward premia in percentages were quoted for the first month at 5.96 per cent, third month at 6.50 per cent and sixth month at 7.13 per cent.

The yearly annualised forward dollar premia ended at 7.52 per cent.

In the cross-currency market, the rupee was traded in a narrow range against the euro, pound sterling and Japanese yen.

It closed at Rs 46.13 for a euro, Rs 68.99 for a pound sterling and Rs 35.49 for a Japanese yen.

Elsewhere, the Reserve Bank of India has fixed the reference rate for the US dollar at Rs 42.71 as against yesterday's rate of Rs 42.70 per dollar.

The forex market will remain closed tomorrow on account of Ambedkar Jayanti.

UNI

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