Re Holds Ground Against $, Forwards Lower
According to dealers, the lack of trading activity was partly because many dealers had not resumed trading after the holiday on Monday. A section of dealers, however, expressed surprise over the low-key nature of trading. This, because, they expected that the volume and the pattern of trading would perk up after a holiday. Resuming the day in the range of 35.71 to 35.72, the rupee slipped to 35.75-35.76 on moderate dollar demand. Market sources had estimated a considerably larger dollar demand but that did not happen in the absence several players in the market. Dealers, however, were credited with the view that trading activity would probably pick up on today or tomorrow.
The closing quotes for the day were between 35.72 and 35.73. Cash-spot rates were ruling in the region of 1 paise to 11/2 paise.
Monthly premium rates were marginally lower than they were at the end of last week. The annualised rates on the six-month forward dollar stood at 10.7 per cent, compared with 10.90 per cent, the highest recorded during the preceding week.
The monthly premium rates were quoting at 7/9 paise for September, 39/42 paise for October, 69/72 paise for November, 101/104 paise for December, 140/144 paise for January, 170/175 paise for February and 201/206 paise for March-end.
In the international markets, the dollar was trading in a tight range against major currencies.
The dollar-mark rates were quoted between 1.5090 and 1.5120, while the dollar-yen rates were between 110 and 110.20.