Revenue Department Backs Tariff Talks

FOREX REPORt

The rupee fell yesterday to close at 43.15 in response to the failure in talks between the foreign ministers of India and Pakistan on Saturday. The rupee had closed at 43.05 on Friday.

The rupee was quoted in a broad range of 43.08-43.12 when it opened in he morning. It fell to 43.17 in the afternoon but recovered to rise to 43.11 following good dollar supplies at lower levels. The Indian currency weakened following import-covering at closing hours. Traders said there were no attempts by the Reserve Bank of India (RBI) to prevent the currency's fall.

Traders expect the weakness in the rupee to continue with the currency expected to trade in the 43.12-43.17 range today.

The closing levels of annualised premiums were : 1-month - 5.01 per cent (4.58 per cent on Friday), 3-month at 5.20 per cent (4.60 per cent), 6-month - 5.40 per cent (5.05 per cent), 9-month - 6.01 per cent (5.81 per cent), 12-month - 6.23 per cent (6.03 per cent). Cash-spot closed at 1.00-1.50 yesterday, while tom-spot and cash-tom closed at .50-.75 and .50-1.00, respectively. Premiums (in paise) closed at: June - 8-9; July - 24-26; August - 43-46; September - 63-66; October - 83-86; November - 104-107; December - 124-127; January - 153-156; February - 179-182, March - 206-209, April - 230-233 and May - 253-256.

In the crosses, the rupee quoted at 69.58 against the pound, 45.11 against the euro and 35.88 against 100 yen. me="description" content="MONEY MARKET REPORt">