Rupee Slides To 35.72, Forwards Easier

Dealers said there was no strong reaction in the market to the reports of US attacks on Iraq.

Resuming the day around the previous day's finish of 35.66-35.68, the rupee fell to 35.70, at which the bulk of trading was conducted. Most banks bought a sizeable amount of dollars. The State Bank of India, a key player, was also present in the market.

According to a section of dealers, the Reserve Bank of India was also making dollar purchases when the rates were quoting at Rs 35.70. The rupee, however, lost further ground to the greenback before closing at 35.72.

In the forward segment, the forward dollar premiums also declined marginally. Dealers said there was a considerable let-up in the paying pressure. They added that it could ease further, thus ensuring that the premium rates remained low for the rest of the week.

Monthly premiums were unchanged over Monday's levels, barring a marginal change in the rates for March, which was lower compared with those ruling on Monday. The premiums for six months were at 10/13 paise for September, 40/43 paise for October, 69/72 paise for November, 100/104 paise for December, 143/145 paise for January, 175/182 paise for February and 209/212 paise for March. The annualised rates were computed at 10.5 per cent as against 11 per cent on Monday.

Internationally, the greenback hardened substantially against the mark after reports of the US attack on Iraq trickled in. The dollar-mark rate hit a high of 1.4940 but this could not be sustained and they later declined to 1.4860. The dollar-yen rates was quoting at 109.15, disclosing a small movement.