Rupee Closes At 35.66 Against Dollar

Resuming the day in the range of 35.64 to 35.67, the rupee was trading in a tight band of 3 paise to 4 paise through the day. The Indian currency later closed between 35.65 and 35.66.

According to dealers, the demand for dollars was slack and, on the other hand, the supply, too, was forthcoming. Dealers and bankers, who were looking forward to an increase in the demand for the greenback, were surprised when it did not materialise.

Dealers, however, expect the dollar to rule in this range through the week unless an increase in demand drives up the US unit. Conversely, if there is more dollar supply it will lead to an appreciation of the rupee. Further, they do not feel the RBI will step into the market unless there is a fairly large amount of movement on the rupee.

The forward segment was also marked by subdued trading. The monthly premium rates were unchanged compared with the last week end's levels. Premiums are not expected to move much for the better part of the present week. The annualised rates, which were quoting at 11 per cent on Friday, are likely to rule in the region of 10.45 per cent to 11 per cent.

Monthly premium rates were around 16/18 paise for September, 47/49 paise for October, 76/82 paise for November, 107/112 paise for December, 150/153 paise for January, 183/187 paise for February and 214/218 paise for March. Dealers said marginal movement was witnessed for March as there was some receiving by the State Bank of India.

Internationally, a modest 10-pip movement was recorded on the dollar against major currencies. It was quoting between 1.4820 and 1.4830, while the dollar-yen rates were between 109.10 and 109.15.