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Rupee gains 3 paise to the dollar

The rupee gained ground against the US dollar in the interbank foreign exchange market today.

The rupee opened at 42.50/51 a dollar, moved in a thin range till the mid-session. Off-loading by some banks coupled with poor demand allowed to climb to 42.46 during the day.

However, short-covering by a few players, who went long on the dollar during the day led the rupee to end at 42.49/50, showing a gain of 3 paise from the previous close of 42.52/53.

The forwards (in paise) were 15-17 for March, 41-44 for April, 64-66 for may, 91-93 for June, 116-118 for July, 142-144 for August and 168-170 for September. The six-month annualised premia ended at 7.15 per cent.

Cash/spot ended at 1.00-1.50 paise and tom/spot, cash/tom at 0.50-0.75 paise.

At the Tokyo market, the US dollar dropped against the yen as US banks and Japanese exporters sold the currency to take profits from last week's sharp rise, traders said. The dollar bought 121.78 yen in late-afternoon trading, down 1.16 yen from late Friday in Tokyo and below its New York level of 122.80 yen late Friday.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs 42.50 a dollar from the previous Rs 42.53. The rupee ended at 68.20 a pound sterling, 46.37 a euro and 34.97 a yen.

UNI

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