Re Shade Lower At 47.86/87

The rupee weakened slightly today to close at 47.8650/8700 to a dollar in thin and lacklustre trading compared with the previous close of 47.8550/8650. The one-year forward dollar premium came off to close at 5.78 per cent as against the previous close of 6.10 per cent.

"There was some importer demand which weakened the local currency in an otherwise quiet day of trading. The demand was matched by steady exporter sales and unwinding of long positions. The demand and supply are evenly matched," a dealer with a private sector bank said.

The rupee dipped to a low of 47.8700/8750 to a dollar intra-day after opening at 47.8550/8650. Dealers expect trading to be range-bound (47.80-47.90) next week as exporters will sell dollars, converting receipts due in October, thereby bringing forwards down.

Rupee-dollar outright spot dealings were generally quiet and range-bound, despite the modest month-end dollar demand exerting mild pressure on the domestic unit, as there was enough dollar supplies from exporters.

Rupee sentiments have improved following the lifting of economic sanctions by the US, the possibility of a full-scale US-Afghan war receding and the global crude oil prices edging lower.

The benchmark Brent crude oil price was trading around $22 per barrel in Asian trade, still hovering around near 18-month lows.

The rupee is expected to remain stable when it opens for business on Monday, unless the uncertainties arising from the developments in Afghanistan put renewed pressure on the currency.