Rupee Range-Bound As Players Stay Away

The rupee moved by a modest 2-paise yesterday amid subdued trading in a market gripped by speculation over the impending credit policy.

Opening the day at 35.66, the Indian currency dipped to 35.67 on moderate dollar purchases. This, however, triggered off a dollar sell-off, sending the rates to 35.65. The closing quotes for the day were between 35.65 and 35.66. Dealers said most banks were squaring up positions for the spot date on October 22.

The forward premiums were quoting a shade lower than Wednesday's figures. The monthly premium rates were also down. The annualised rates, therefore, were lower at 8.8 per cent compared with 9 per cent the previous day.

Monthly rates were at 3/5 paise for October, 18/21 paise for November, 40/43 paise for December, 69/73 paise for January, 97/101 paise for February, 127/132 paise for March and 158/163 paise for April-end. The rates, which are not expected to change until next week, could be lower if there is a cut in the CRR and deposit rates.

Internationally, the dollar remained range-bound against major currencies. The dollar-mark rates were quoting between 1.5380 and 1.5410, while the dollar-yen rates were between 111.90 and 112.10. The dollar-Swiss franc rates were between 1.2660 and 1.2680.