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Rupee slides 4 paise against the dollar

The rupee weakened by about four paise against the US greenback on corporate dollar demand at the inter-bank foreign exchange market today.

Opening nearly steady at 43.22/24, the rupee came under pressure on good dollar buying by corporates and banks at the relatively lower level, and gradually moved down to close at 43.27/29, about four paise lower than yesterday's 43.23/24.

Dealers attributed the slight fall to Monday's American Independence Day holiday in New York, which triggered today's dollar demand.

The forward market witnessed dull activity and premia came down on scattered receipts. Near forwards eased by 2-3 paise while forwards dropped 4-5 paise.

The sixth-month and 12-month annualised premia closed lower at 4.71 per cent and 5.30 per cent as compared to 4.87 and 5.52 per cent respectively of the previous day.

Meanwhile, the Reserve Bank of India has maintained the reference rate for the US dollar at Rs 43.28. In the cross currency, the rupee strengthened marginally against the pound sterling and the euro while easing a bit against the Japanese yen. The sterling ended at 67.88 (68.15), euro at 44.19 (44.25), and yen at 35.44 (35.36). In the domestic money market, the call rates opened steady at 8.25-8.40 per cent, ruled in the range of 8.10 and 8.40 per cent, before closing a bit lower at 8.15-8.30 per cent.

• Rs 43.27/29 vs $
• Rs 44.19 vs euro
• Rs 68.15 vs pound sterling
• Rs 35.44 vs yen (100)

UNI

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